It’s no secret that foes of the United States – including Venezuela, Iran, Russia, and China – are experimenting with cryptocurrency technology as they seek to render their economies immune to crippling US sanctions.
However, a new study from the Foundation for Defense of Democracies (FDD) exposes the lengths to which these rogue nations are willing to go to make this a reality.
“For decades, U.S. adversaries have been trying to evade and undermine this power, but there has been no way to conduct significant international commerce without moving through the pipes of the U.S.-led global financial system. Now, however, new pipelines are being built,” the Foundation for Defense of Democracies (FDD) stated in the study.
Weaponizing crypto to resist US economic pressure
Iran, Venezuela, Russia, and China – four US foes affected by or constantly at risk of US sanctions – go “beyond mere sanctions evasion” and develop alternative global commerce payments systems outside of US influence via blockchain technology and cryptocurrencies, the study reads.
According to the FDD – while they are exploring the development of their own state-backed crypto – China, Iran, and Venezuela also restricted access to the public cryptocurrencies that are currently available on the market.
“Russia, Iran, and Venezuela have initiated blockchain technology experiments that their leaders paint as tools to offset U.S. financial coercive power and increase sanctions resistance. China is also wary of U.S. financial power and the ever-present threat of sanctions against Chinese officials,” the researchers stated.
Venezuela’s ‘blockchain’ mess serves as a case study
But these endeavors have met with mixed success.
As Nicolas Maduro’s government failed to build the economic and technical infrastructure for Venezuela’s state-backed cryptocurrency,