Bypassing Sanctions using Cryptocurrency is a RealityAugust 1, 2019
Previously, blocking transfers to wallets was impossible. However, in a fight against economic sanctions, “bypassing sanctions using cryptocurrency is a reality.”
However, it has been noted that cryptocurrency transactions are not silver bullets to deal with economic sanctions. Only smaller companies and individuals will be able to sidestep the economic restrictions by making use of cryptocurrency for their transactions. Major corporations might not.
The Trump administration ratcheted sanctions on Iran following the tearing up of the nuclear deal previously negotiated by Barack Obama. Before Iran approved of mining, Iranian lawmakers required the outlawing of Bitcoin mining as miners were taking undue advantage of the subsidized power supply in Iran.
United States lawmakers are gathering again to debate on the blockchain and cryptocurrency policy. The hearing will be called “Examining Regulatory Frameworks for Digital Currencies and Blockchain.”
Jeremy Allaire will be representing the witness panel. Jeremey Allaire has a positive stance towards the cryptocurrency. He is pro-regulation and has required several times that there needs to be regulatory certainty.
He recently wrote: “Possibly the largest bull signal for BTC ever. Crypto now a Presidential / Global policy issue. People everywhere will embrace a mix of sovereign and non-sovereign digital currency.”
Rebecca M. Nelson with a neutral outlook towards cryptocurrency previously presented a report to the Congress in which she stated: “what lessons might be gleaned from other countries that could inform U.S. regulations of the cryptocurrency market?”
Nelson further opines large scale adoption of digital currencies will lead to a range of policy implications for the United States. The repercussions can range anywhere from sanctions, privacy considerations, consumer protection, financial instability, and others.
Mehrsa Baradaran, law professor, stated, “I have been following bitcoin and cryptocurrency for years. I do not believe my understanding is limited, but always happy to read more.”
Baradaran feels that we are left without a clear idea of how much of adoption is good enough concerning cryptocurrencies and about who is to be included and about what should be done with those who have been left out unbanked. However, Baradaran feels that all banking related inequalities and issues in the U.S. should be cleared only by democratic means. She further opines that “cryptocurrencies want to take over where our public institutions have failed.”
So, whether TCAT tokens, Bitcoin, Stellar Lumens of Litecoin will take over or each of them will take over in different use cases is that which time has to declare.