Sunday, May 20, 2018

The era of cryptocurrencies may have made economic sanctions obsolete as Iran and Russia discuss their use following end of Iran Deal

Back when the dollar and the SWIFT system were at their height of their power, the use of economic sanctions was a devastating weapon the U.S. or United Nations could implement to push (force) a particular government or economy to have to fall back in line with the guidelines of U.S. and international hegemony.

However the second decade of the 21st century has seen a paradigm shift where there are now several different avenues in which individuals, nations, and even coalitions can use to bypass imposed sanctions and make that financial weapon almost obsolete.  And one of these avenues is the advent of cryptocurrencies.

And as the U.S. begins plans to re-institute new economic sanctions on Iran following President Trump's 'tearing up' of the Iran Deal, there are now growing discussions between Russia and the Middle Eastern oil power to conduct trade through cryptos should Washington once again decide cut off Iran from the SWIFT system.

Iran and Russia could start using cryptocurrencies to avoid Western sanctions, Russian news portal RBC reported yesterday, May 17. 
Mohammad Reza Pourebrahimi, the head of the Iranian Parliamentary Commission for Economic Affairs, referred to cryptocurrencies as a promising way for both countries to avoid US dollar transactions, as well as a possible replacement of the SWIFT interbank payment system. 
At a meeting with Dmitry Mezentsev, the Chair of the Federation Council Committee on Economic Policy, Pourebrahimi said that they have “engaged the Central Bank of Iran to start developing proposals for the use of cryptocurrency.” 
Pourebrahimi added that he discussed this topic in the State Duma's Committee on Economic Policy the day before and that Iran had established cooperation with Russia on this issue: 
“They [Russia] share our opinion. We said that if we manage to move this work forward, then we will be the first countries that use cryptocurrency in the exchange of goods.” – Coin Telegraph
Should this potential trade agreement come to pass, it would be the second real use of cryptos (after Venezuela and Russia) in both international trade, and inter-bank settlement.  And a successful outcome from this could then quickly see the rest of the world rush headlong towards creating their own sovereign cryptocurrencies as a replacement for currencies tied to the SWIFT system, and invariably put a dagger in the heart of the dollar's control over the global monetary system.


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