Digital currency is difficult to “prevent” US sanctions

Digital currency is difficult to “prevent” US sanctions

US Assistant Secretary of the Treasury Wally Adeyemo confirmed USD will continue to be the dominant currency in the world despite the growing interest in digital currencies.

Confirm the position of the greenback

Speaking to CNBC, US Secretary of the Treasury Wally Adeyemo said that in many ways, digital assets present many opportunities for the economy, but they also present significant challenges.

“We know that digital assets have the potential to be used for money laundering and are difficult to detect. But cooperation between countries around the world can help address this risk by encouraging digital asset creators to be more compliant with anti-money laundering regulations, ”said the deputy minister.

He also said that the determining factor in the greenback’s position depends on the US government’s policies on inputs to the economy. “The reason people are interested in the dollar-based economy is because they want to invest in the US,” Adeyemo said.

One of the key decisions he mentioned involves an infrastructure investment package worth 1,000 yen Billion USD, which went into effect earlier this week, will help unlock the potential of the US economy and create investment opportunities for other governments.

“If our economy grows, there is a chance for the world economy to grow, and if that happens the dollar will remain the dominant currency in the world,” he affirmed.

His views echo the comments made earlier this year by St. Louis Federal Reserve Chairman James Bullard dismissing Bitcoin and other digital assets as a serious threat to the dollar’s position as the world’s reserve currency.

No impact on the sanctions policy

According to Reuters, the governor of Russia’s central bank Elvira Nabiullina said last week that she would launch a prototype of her digital ruble platform early next year. Nabiullina said Russia will go through a test before making a final decision on adopting the digital currency.

Speaking to CNBC in early June, Nabiullina said she expected digital currencies to play an important role in the future of financial systems when the economy goes online.

Many central banks around the world are developing their own digital currencies (CBDCs). CBDC proponents argue that digital currency can promote financial inclusion and facilitate cross-border transactions.

When asked whether the prospect of a digital ruble could affect the effectiveness of US sanctions, Adeyemo replied, “We believe that our sanctions will still have scope to affect economies, even if the digital ruble or the digital currencies The world economy is still networked. “

“Companies in Russia are still doing business all over the world. Much of this business is done in US dollars, with US financial institutions, and that’s because the US economy is still the largest economy in the world, ”he said.

Washington has imposed sanctions on Russia in recent years for a variety of reasons, from alleged poisoning against opposition politicians to electoral interference and cyberattacks.

Adeyemo’s comments complement an October Treasury Department report that said U.S. sanctions on cryptocurrencies could have some ramifications. “The emergence of cryptocurrencies makes it difficult for sanctions to take effect,” he said before a Senate committee last month.