The government of President Joe Biden should be more selective in imposing economic sanctions amid the proliferation of digital currencies. This is the conclusion reached by the US Treasury Department in a published report on the use of restrictions by Washington over the past 20 years.
According to analysts of the Ministry of Finance, the growing popularity of cryptocurrencies may reduce the effectiveness of restrictive measures. The experts recommended that decisions on the imposition of new sanctions be guided by the “whether it contributes to the achievement of clear political goals within a broader strategy”, as well as to assess whether the sanctions are “the right tool in the given circumstances” and their possible “political and economic consequences” …
US Deputy Treasury Secretary Adewale Adeyemo said sanctions “are a fundamentally important tool for protecting our national interests,” but noted that this mechanism is now facing new challenges. “We are committed to modernizing and strengthening this essential tool with partners and allies,” added Adeyemo.
The report notes that various technological innovations such as digital currencies, alternative payment platforms, and new ways to hide cross-border transfers potentially reduce the effectiveness of US sanctions.
“This gives attackers the ability to store and transfer funds outside of the traditional dollar-based financial system. They also provide additional opportunities for our adversaries who are trying to create new financial and payment systems designed to reduce the role of the dollar in the world, ”the report says.
For a more effective application of sanctions, the Ministry of Finance recommended that the American leadership impose restrictions simultaneously with its allies and partners.
Earlier it became known that the US administration refused to impose sanctions against Nord Stream 2 against the will of Congress. The restrictions will not be implemented during the presidency of the current leader Joe Biden.
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