Sanctioned countries seek alternative financial infrastructure

03/01/2023 06:57 • Digital Disruptors • 88 views

On March 1, Yaya Fanusie, the policy director of the Cryptocurrency Lobbying Organization “Cryptocurrency Innovation Committee (CCI)”, said in an interview that the sanctioned countries are seeking to conduct transactions on financial infrastructure not controlled or seriously affected by the United States in order to transfer funds across the border more freely; If the United States continues to “wait and see” and lags behind in the adoption of CBDC, this may cause “trouble” and lead to unpredictable “geopolitical impact” over time.

The policy director of the Encryption Innovation Commission called on the United States to stop its “wait-and-see” attitude towards CBDC

Analysis based on this information:

In an interview on March 1, Yaya Fanusie, the policy director of the Cryptocurrency Lobbying Organization Cryptocurrency Innovation Committee (CCI), expressed concerns over the potential fallout from the use of alternative financial infrastructure by countries currently facing sanctions from the United States.

Fanusie remarked that these countries are looking for financial infrastructure that is not controlled or impacted by the United States. The objective is to move funds across borders more freely, despite facing sanctions. This move is a result of the strict scrutiny of financial transactions in sanctioned countries, making it challenging for them to conduct everyday business and engage in international trade.

The United States has been known to impose strict sanctions on countries such as Iran, North Korea, and Venezuela, to name a few. These countries face challenges in using their local currency and must resort to alternative means to engage in international trade and finance-related activities.

The adoption of cryptocurrencies and other digital assets has become a viable alternative for these countries. Fanusie argues that if the US does not actively pursue the adoption of central bank digital currencies (CBDCs), it would lead to geopolitical consequences.

Fanusie remarks that the use of cryptocurrencies and other digital assets by sanctioned countries could potentially cause international trouble. This trouble could stem from the increased volatility of these assets, which could lead to unstable prices, financial instability, and even a global crisis.

The only viable solution, Fanusie argues, is for the US to adopt CBDCs. CBDCs are digital versions of a country’s fiat money and would allow traceable and transparent financial transactions, ensuring that the United States knows what is happening with foreign funds. The adoption of CBDCs at the international level could also ensure that the United States maintains its economic dominance and avoids unpredictable geopolitical ramifications.

In conclusion, the rapid growth of cryptocurrencies and other digital assets provides sanctioned countries with an alternative means to conduct financial transactions. There is a growing concern that this move could ultimately destabilize the global financial system. Hence, the adoption of CBDCs could be instrumental in avoiding unforeseeable geopolitical impacts and maintaining economic dominance.

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