In recent decades, the United States has used a set of sanctions to “punish” or “coerce” certain countries. Its purpose is that these states behave in a certain way or execute certain actions. However, it seems that since the arrival of cryptocurrencies, this system has been losing effectiveness.
US economic sanctions affect various countries that, in one way or another, have whose governments have behaved in a way that is considered reprehensible at the international level. Such as North Korea, Iran or Venezuela. However, cryptocurrencies appeared as a way out for these nations to the restrictions of the US power.
The first country to try to take advantage of this advantage was Venezuela, creating in 2018 its own digital currency: Petro. However, due to the great differences in concept that exist between the Venezuelan invention and cryptocurrencies such as Bitcoin, many experts have cataloged it as a failed experiment. In fact, the bulk of the crypto community does not consider it more than a fraud or scam.
But, although it can be classified as a fraud, it set a precedent that other states, such as Turkey and Iran have wanted to imitate. Creating a national digital currency to evade US sanctions became the solution to the problem.
None of the sanctioned countries have yet successfully completed their plan. However, they are working to make it a reality. And it’s not just about creating national digital currencies, but about using traditional cryptocurrencies, such as Bitcoin and Ethereum, in their favor.
United States position
Faced with this challenge, the United States has tried to respond with new legislation to counteract the “cryptographic solution.” Starting with the government of Nicolás Maduro in Venezuela.
That is why, in 2018, President Donald Trump issued Executive Order 13827. It prohibits US citizens from trading with Petro, a cryptocurrency created by the Maduro regime in Venezuela.
However, this law is evolving. It is no longer just about the ban, but about a possible reprimand for those who transact with Petro.
And this does not stay that way, but it could even include those who carry out transactions with any other cryptocurrency with a Venezuelan company, in order to avoid the sanctions imposed by the United States.
In the words of a spokesman for the State Department of the Western Hemisphere Affairs office:
“(Executive Order) 13827, as amended, prohibits people from the United States. make transactions in any digital currency, digital currency or digital token issued by, for, or on behalf of the previous Maduro regime on January 9, 2018 or later. Anyone who trades with sanctioned individuals or entities, such as the previous Maduro or PDVSA regime and, regardless of the currency of the transactions, is at risk of being exposed to US sanctions. ”
For now, there are not many clear points. Although it is suggested that the ban and possible consequences can be extended to other cryptocurrencies, this issue is not explicitly addressed. So there is still a lot of confusion about it.
What is clear is that the United States is doing its best to ensure that its sanctions, in one way or another, continue to be executed.