Sanctioned countries seek alternatives to US-controlled financial infrastructure

03/01/2023 06:57 • NFT Newsflash • 264 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

Interpret the above information:

In a recent interview, Yaya Fanusie, a policy director of a cryptocurrency lobbying organization, Cryptocurrency Innovation Committee, stated that countries facing economic sanctions are actively seeking alternatives to transact on financial infrastructures not controlled by the United States. These nations aim to transfer funds across borders more freely and avoid any interference from the US. Furthermore, Fanusie has emphasized the importance of the US government’s adoption of central bank digital currencies (CBDCs) to avoid potential geopolitical impacts.

Sanctioned countries’ interest in adopting cryptocurrencies could have significant implications for the current financial system. Countries such as Russia, Iran, and North Korea have been under US sanctions for an extended period, leading them to seek alternative means of conducting international financial transactions. Cryptocurrencies could provide a viable alternative as they operate independently of governments and traditional financial systems, making them resistant to external interference.

For the US, the adoption of CBDCs has become increasingly vital as it faces growing competition from other countries in developing digital currencies. If the US lags in the development of CBDCs, it could significantly impact the country’s ability to maintain its international influence in the financial sector. Moreover, it could result in a power shift towards emerging economies that are developing CBDCs, causing significant geopolitical shifts.

The US government’s delay in adopting CBDCs and sanctions imposed on certain countries to restrict their access to traditional financial infrastructure has been the driving force behind the search for alternative means of transacting. These factors have created an environment conducive to the development of cryptocurrencies and CBDCs, providing a potential solution for sanctioned countries.

In conclusion, the move towards cryptocurrencies and CBDCs by sanctioned countries signifies a growing need for alternative financial infrastructures beyond the traditional controlled systems. The US government’s adoption of CBDCs could serve as a solution and could, potentially, shape international power dynamics. Therefore, it is critical that the US considers the adoption of CBDCs as a priority, alongside developing regulations to ensure their proper functioning.

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