The FDD evaluates the risks of the use of cryptocurrencies by the countries that were sanctioned by the United States
The Foundation for the Defense of Democracies (FDD) has assembled an assessment of the current and future risks of the use of cryptocurrencies by conflicting countries with the United States in a report published on July 11.
In the report, the agency describes possible future scenarios that would make blockchain technology sanction resistance as a major threat. Specifically, the FDD analyzed how countries like Russia, China, Venezuela and Iran are implementing digital currency technology and how this phenomenon could influence US sanctions in the future.
In the report, the FDD warns against a scenario in which one of the countries mentioned convinces other nations to use a state-based cryptocurrency based on an important export of commodities such as oil, the sanctions would be much more difficult to enforce.
Another scenario of concern would arise if an adversary advances in the creation of a digital coin wallet infrastructure in which its citizens can maintain and market the cryptocurrencies, as well as use it for transactions with local companies.
The report warns of the success of a US adversary with blockchain technology in its national banking system to the point of being able to integrate its platform in the sectors of the financial system of other nations. The FDD also identified the following threat:
“An independent cryptocurrency like Bitcoin [BTC] gains widespread adoption in commerce and becomes more relevant to the global financial system, then a US adversary begins to accumulate significant reserves in the cryptocurrency.” The state, therefore, uses their holdings to gain more influence in the global financial system. “
Meanwhile, the Russian parliament, the State Duma, again postponed the adoption of the country’s important cryptocurrency bill “On digital financial assets” (DFA) until the autumn session, as officials could not reach a common position. about the fate of digital currencies in Russia.
The central bank of China is reportedly developing its own digital currency in response to Facebook’s Pound, as the latter could pose a threat to the country’s financial system. It should be noted that the bank’s plans come at a time when China took a hard line position towards the cryptocurrency trade, with financial institutions banning Bitcoin trade, initial currency offers and cryptocurrency exchanges.
In mid-May, Cointelegraph reported that Venezuela was considering closing mutual trade agreements with Russia using the ruble, as well as the digital currency Petro backed by Venezuela’s oil, a controversial project that was initially launched in February 2018.
In Iran, the purchase and sale of cryptocurrencies is illegal, as announced by the deputy governor for new technologies at the Central Bank of Iran, Nasser Hakimi. On July 6, Iran’s Minister of Industry, Trade and Supplies declared that the US Congress was working to stop Iran’s access to crypto-mining and Bitcoin in an attempt to prevent the evasion of sanctions.
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