FDD assesses the risks of Crypto use by countries under US sanctions

4 min read

In a report published on July 11, the American Foundation for Defense of Democracies (FDD) prepared an assessment of the current and future risks of cryptocurrency use by countries opposed to the United States.

In the report, the agency outlines possible future scenarios that ensure that blockchain technology sanctions withstand a greater threat. In particular, the FDD analyzed how countries such as Russia, China, Venezuela and Iran use digital currency technology and how this phenomenon could affect United States sanctions in the future.

In the report, the FDD warns of a scenario in which one of the above countries convinces other countries to use a state-based cryptocurrency based on major exports of raw materials such as oil, and sanctions would be much harder to enforce.

Another worrying scenario would occur if an opponent had to make progress in creating a digital wallet-wallet infrastructure in which its citizens can maintain and trade in the cryptocurrency and use it for transactions with local businesses.

The report further warns against the success of an American opponent with blockchain technology in its domestic banking system, to some extent that it can integrate its platform into the financial system sectors of other nations. The FDD has also identified the following threat:

"An independent cryptocurrency such as Bitcoin (BTC) gains widespread acceptance in the trade and becomes more relevant to the global financial system. Then an American opponent starts building important reserves in the cryptocurrency. The state uses its positions to gain more influence in the global financial system. "

In the meantime, the Russian parliament, the State Duma, has again postponed the approval of the country's most important crypto bill "On Digital Financial Assets" (DFA) until the autumn session because officials have been unable to reach a common position on the fate of digital currency & # 39 s. in Russia.

The Chinese central bank is said to develop its own digital currency in response to Facebook's scales, as the latter could pose a threat to the country's financial system. In particular, the bank's plans come at a time when China has chosen a hard line in the direction of cryptocurrency trading, with financial institutions banning Bitcoin trading, initial currency denominations and crypto exchanges.

In mid-May, Cointelegraph reported that Venezuela is considering closing the mutual trade settlements with Russia using the ruble, as well as the Petro digital currency supported by Venezuela, a controversial project that was first launched in February 2018.

In Iran, the sale and sale of cryptocurrencies is illegal, as deputy governor for new technologies at Iran's central bank, Nasser Hakimi. On July 6, the Iranian Deputy Minister of Industry, Trade and Supply stated that the United States Congress was trying to stop Iran's access to crypto and Bitcoin mines in an effort to prevent sanctions being circumvented.

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Don Bradman

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