Problems of use cryptocurrency to bypass economic sanctions 2 октября, 2021

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The United States continues to regularly expand the list of countries subject to economic sanctions and the administration of Donald Trump is responsible for a new wave. However, despite tough restrictions, most of the affected states consider cryptocurrency in the unsuitable option to bypass sanctions. What is related to, and what alternative ways are chosen by governments, we reviewed in the article.

High-ranking officials of countries that are subject to economic sanctions have repeatedly lifted the use of digital currencies and other virtual currencies to circumvent restrictions. At the same time, there are also messages about the use of Bitcoin to conduct «mine-based» transactions by Russia, Venezuela, Iran and

Although the largest share of the trade turnover of many

In practice, countries are easier and safer to resolve the issue by calculations in alternative dollar currency or creating a Swift payment system.

One of the main features of virtual currencies is their high volatility. Daily fluctuations in prices by 10-20% allow speculators to implement their trading strategies, but when it comes to international calculations for the supply of goods, works and services at the government level, it becomes invalid. Countries are easier to use a more stable and understandable alternative tool, such as euro or yuan.

Another feature is decentralization. Lack of control is useful in terms of global use and public administration, but the government needs guarantees.

Thanks to the blockchalter, cryptocurrency payments may be arbitrarily safe algorithmically, but, in addition to the risk of racing course, the authorities are interested in responsibility for translated or received funds. That is, who can provide their cost, exchange and liquidity in the future.

Among other things, to flawlessly organize a full-fledged uneasy system, tied up on calculations in cryptocurrency (or even with the possibility of subsequent conversion), is a very difficult task in the conditions of the current financial system and the lack of legislative regulation. Therefore, such calculations on large amounts still remain an exotic phenomenon.

However, representatives of the country under restrictive sanctions are not refused of them. According to Gaidar Gasanova, an expert of the International Financial Center, the parties can use cryptobiruses with cold wallets, which do not lead to detailed accounting of the movement of user assets. This allows calculations in cryptocurrency not related to any personal information, and no one except the recipient will not know who they were sent for.

Governments are not solved using virtual currencies due to the back of the absence of control over the public blockchain. Using cryptocurrency, terrorist organizations and shadow money can be easily financed. Therefore, they are developing alternative systems.

Although Russia does not plan to legalize cryptocurrencies and not hurry with their regulation, but from December 2018, together with other countries of the Eurasian Economic Union, works on the project

After the introduction of harsh economic sanctions, many Iranian officials

Unlike other countries, Venezuela openly uses virtual currencies to combat sanctions. Although the authorities encourage payments in cryptocurrency, but only for external calculations and combating hyperinflation. However, the main emphasis is made on the national coin EL PETRO, actively promoted inside the country, translating the digital asset. payments, salary, savings of citizens and

The growth of the popularity of digital currencies and alternative payment systems are beginning to gradually pur up to the position of the American dollar. As more companies start taking cryptocurrency as a form of payment, and countries to abandon dollar for mutual settlements, financiers are increasingly beginning to think about the future prospects of the global reserve currency.

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