Industry Analysis

Cryptocurrency being weaponised by the United States

The growth of cryptocurrencies in countries

In a few previous reports, China, Iran together with Russia are working on its own national digital coins. And these countries are planning on using cryptocurrencies as a way to respond to the way the United States economy is planning on dominating the space.

According to a new study that was done at the Foundation for Defense of Democracies (FDD). Cryptocurrencies are being used by the U.S adversaries to circumvent the nation’s geopolitical supremacy over the nation. This report was published the same day that the President of the United Stated Trump, tweeted his opinions on Bitcoin.

This may also have something to do with the fact that congress leaders have been trying to stop the development of cryptocurrencies. By drafting a bill against new crypto’s being created.

There are currently four countries that are facing pressure or risks from U.S sanctions. Which are Russia, China, Venezuela and Iran. While Venezuela has launched it’s cryptocurrency, China has been busy accelerating plans to launch its own cryptocurrency as well. Russia on the other hand has multiple blockchain projects in the works and is focused on using it in order to gain a strategic advantage. While Iran recently revealed that it was planning on creating a gold-backed cryptocurrency.

By these countries being able to create its own unique digital currency, especially ones that are pegged to major commodities, such as oil. Will be able to make sanctions much harder to enforce on these countries or its states, according to the FDD study.

The FDD also stated that, Washington needs to start cultivating the expertise in order to influence and start leading in what is becoming an international crypto race.

The United States and its sanctions

The U.S is currently one of the most technologically advanced countries in the world. It has one of the biggest economies and is influencing world trade. According to the report:

“China is buying in, it involved moving its trade onto a blockchain platform outside the conventional system, would be a game-changer.”

The report also warns about other clandestine approaches that the U.S could adopt against cryptocurrencies. Which includes the creation of a digital currency wallet infrastructure that will allow residents to hold and trade cryptocurrencies. While using it for local transactions or in order to build significant reserves in a widely adopted crypto. And can be used in order to influence the global financial system.

There is also a possibility that Russia could use and invest in Bitcoin in order to bypass U.S sanctions, as it is currently suggesting. Bitcoin trading in Russia has also increased with over-the-counter trading according to analysis. While the gold-backed cryptocurrency from Iran has revealed that it will be mined by small consortiums of private Iranian tech companies.

Iran is also planning on negotiating the use of cryptocurrencies in its financial transactions with Bosnia, Britain, France, Germany, Russia, Austria, South Africa and Switzerland in order to circumvent the U.S sanctions.

The Blockchain Technology has created a potential pathway to an alternative financial value transfer system, that will be outside of the control of the United States.

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coinmag

My occupation is the Research of blockchains and their practical applications in the economy. I have graduated through various levels of education, including electrical technique, Business, Psychology, and innovative technologies.

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