Nations Are Reshaping World Currencies With Crypto

The TRM report shows that crypto is now embedded in the economic and security systems of the country, it is not treated as a peripheral asset.

A new report from blockchain intelligence firm TRM Labs has revealed that governments around the world are no longer standing on the sidelines of crypto markets, with states from North Korea to Singapore actively working to implement blockchain networks as part of their national financial strategies.

However, there is a divide between how authoritarian governments and democracies use digital assets, and this, according to the report, turns crypto into a quiet but powerful force in global finance and geopolitics.

Crypto Goes From Market Experiment to Tool of the Empire

According to TRM, the borderless design of the blockchain allows countries to move value without the traditional systems built on the US dollar, SWIFT, and connected banks, and authoritarian regimes that rely heavily on this feature.

North Korea stands out as the most aggressive example. The company has coordinated internet units that have seen exchanges, DeFi, and bridge hacks worth billions of dollars, including the prominent Bybit breach in February 2025.

Investigators traced how the stolen funds were moved to mixers, moved across blockchains, converted into stablecoins, and finally released by Asian traders. That money, TRM says, goes back into Pyongyang’s nuclear weapons programs.

Russia, on the other hand, has taken a different approach since facing severe sanctions following its invasion of Ukraine in 2022. Although digital assets have not replaced traditional currencies, TRM data shows that they are now playing a supporting role in cross-border settlements with partners such as Iran, fundraising for pro-Russian groups, and large-scale mining operations that turn cheap energy into foreign currency.

Meanwhile, Iran legalized Bitcoin mining in 2019 and, according to the report, was using domestically mined BTC to pay for imports while bypassing payment restrictions.

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A Different Path to the Future of Crypto

Not all uses of the crypto regime are controversial. The study identified democratic governments as focusing on oversight, transparency and market stability.

In the US and Europe, for example, agencies now rely on blockchain analytics to track ransomware payments, enforce sanctions, and support cross-border investigations. Europe’s MiCA framework, which is now in effect, requires stricter authorization and monitoring of crypto firms, while American regulators are still refining digital asset rules through agencies such as FinCEN and OFAC.

Asia offers a more collaborative model, with the Monetary Authority of Singapore working closely with private companies on compliance technology, while Japan has tightened exchange oversight following previous hacks.

Additionally, many central banks in the region are exploring government-issued digital currencies and token reserves, lending ideas to public blockchains while maintaining strong state control.

The difference is stark. Where North Korea uses crypto to circumvent restrictions and finance weapons, countries like Singapore and those in the EU have used similar tools to modernize payments and transactions. TRM argued that the difference comes down to the visibility and enforcement of the law. Public blockchains record all transactions, but only strong statistics and collaboration can make that data binding.

As crypto markets continue to mature, the report suggests that this divide will widen. Authoritarian states are likely to continue to investigate digital assets to find workarounds, while democratic governments will push for laws that include the establishment of oversight.