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US Treasury Department: Digital currencies reduce the effectiveness of sanctions


The US Treasury Department recently released a report on the effectiveness of US economic sanctions, citing digital currencies as one of the most serious challenges for the United States in maintaining the effectiveness of sanctions.

According to Digital Currency, US President Joe Biden had previously instructed the US Treasury Department to assess and report on the impact of economic sanctions on countries and individuals subject to US sanctions.

The Treasury Department finally released the preliminary results of its assessment yesterday in a nine-page report that explicitly addresses the role of digital currencies in the effectiveness of US sanctions policies.

The US Treasury Department has said that as the popularity of digital currencies increases, the role of the dollar in the global financial system has diminished, and some countries that do not have good political relations with the United States want to replace the traditional financial system with new payment technologies.

A part of this report states:

The United States now faces new challenges in increasing the effectiveness of sanctions. The United States must keep pace with changes in the global financial system in order for sanctions to work [اقتصادی] Preserve yourself. Some US enemies are reducing the use of the dollar in their overseas exchanges, and this could reduce the effectiveness of sanctions.

The US Treasury Department also said:

New technologies, such as digital currencies, alternative payment platforms, and other new methods used to conceal foreign payments, can all reduce the effectiveness of US sanctions.

US Treasury Department: Digital currencies reduce the effectiveness of sanctions
Graph of the use of economic sanctions in US foreign policy

The US Treasury Department believes that not controlling digital currencies could weaken US sanctions policies.

The report says the Treasury Department can take advantage of the potential of the digital currency space through greater engagement with financial institutions, its allies and the media.

The US Treasury Department has emphasized:

We need to invest in deepening our core knowledge and capabilities so that we can maintain the lasting effectiveness of sanctions in the growing environment of digital currencies.

Also read: US order to digital currency companies to avoid circumventing sanctions; Is the capital threat to Iranians?

US Treasury Department: Digital currencies reduce the effectiveness of sanctions
US sanctions scatter chart; Iran has the largest share of US sanctions compared to other countries in the world

The US Treasury Department (OFAC), which operates under the auspices of the Treasury Department, recently issued a policy for businesses operating in the digital currency that emphasizes the need for US companies to refrain from providing services to countries and individuals under US sanctions. Was.

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