Can Cryptocurrencies Really Help Countries Avoid US Sanctions?

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If we mean by “countries” the people the answer is definitely yes, Bitcoin and cryptocurrencies help in those countries where the local currency has failed. But if we mean by “countries” the state the answer is not that simple.

In countries like Venezuela or Iran US sanctions where the US sanctions are in place, governments try to explore cryptocurrencies as a way to avoid these sanctions, but at the same time are those governments with their Fiat systems that have lost the trust of their people.

30 morpher 351x185 - Can Cryptocurrencies Really Help Countries Avoid US Sanctions?Airdrop: Morpher is Giving Away 30 USD to Launch their Trading Platform.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.

So if cryptocurrencies will technically help governments make cross border payments more easily without relying on the US system, this might be, but this is yet to be seen. However, people in these countries where the monetary policy has failed are more likely to embrace decentralized cryptocurrencies like bitcoin instead of a centralized state-issued cryptocurrency.

An example of that is Petro, Venezuela’s state-issued cryptocurrency that has failed to gain the Venezuelans people’s trust despite claims that Petro coin is backed by the country’s oil reserves. On the other side, Bitcoin and cryptocurrencies are getting more popular in these countries with failing monetary systems.

Another thing bitcoin is teaching people is not to trust anybody about your money but to verify. This is why those digital currencies with an authority to be trusted are seen as a high risk like any other inflationary fiat currency from crypto proponents.

To summarize the above, government-issued cryptocurrencies have been a hot topic in the last two years. And that confirms that we are in the phase where governments try to replicate cryptocurrencies. Governments creating digital currencies may enable them to make more frictionless international transactions.

However, the whole concept of crypto is to remove power from centralized authorities creating more democracy. This is why central bank or corporate coins will never compete with bitcoin or other decentralized coins.

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Ethan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past. Also, pro-local, pro-global and anti-national.

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