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Geopolitical Tension

Definition

Geopolitical tension refers to strained relations or conflicts between nations that influence global stability and economic conditions. These international pressures can disrupt supply chains, alter trade agreements, and lead to significant shifts in investor confidence across traditional and digital markets. In the context of digital assets, geopolitical events can cause volatility, drive demand for decentralized alternatives, or prompt governments to accelerate central bank digital currency initiatives. Such tensions underscore the interconnectedness of global systems.