"The role of cryptocurrencies in economic sanctions"

Assalam O Alaikum

Hello dear friends! Well come to my post. How are you all? I hope you will be doing well by the grace of Almighty Allah. I'm also fine and enjoying my day. Today I'm here to share my knowledge with you about the topic "The role of cryptocurrencies in economic sanctions" in this Steem Alliance community. So let's start without any more delay of time.

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In this current era, the economic sanctions, is a great tool to exert pressure on other nations which includes the freezing of digital assets, cutting of trades and affecting the cross border transactions through the digital currencies. But the rise of digital currencies is affecting the financial sectors in both positive and negative ways because they come with advantages and challenges as well. But the cryptocurrencies has brought significant dimensions to the enforcement of economic sanctions.

In this regard, we can say that the crypto currencies are like a double edged sword, which comes with various benefits and advantages in financial systems and in validating transactions through digital means. As we know the crypto currencies like Bitcoin, Ethereum and others operates on blockchain technology and decentralized networks which helps us to validate cross border transactions.

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These transactions can't be traced easily due to the blockchain technology and decentralized nature of crypto currencies. These things as brought significant challenges for the governmental institutions to enforce sanctions. This is because, they operates differently from the traditional banks because they are centralized in which the activities are controlled by a regulatory frameworks but in case of digital currencies, the things are different.

So, the digital currencies are works beyond the jurisdictions, in which they enable companies to move funds cross the borders in the most anonymous way. There are many countries present in the world which are sanctioned by the international community, due to that reasons, numerous restrictions are imposed on them to bypass the digital currencies. To deal with them, these countries go against the rules to perform various tasks.

In this, they mine Cryptocurrencies, hack digital exchanges, to get the payments in digital currencies to meet their needs. In results, by doing that, they don't have any concern with the rules, regulations and the monetary policies of their country's government. Then getting payments on cryptocurrencies, they can convert them into fiat currencies of their own country to perform other tasks.

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Besides all these things, the cryptocurrencies also have a potential to provide financial freedom to the people especially in those areas where the traditional banks aren't available. So in that way, the cryptocurrencies allow them to validate transaction in the sanctioned way to meet their needs. Also, in sanctioned countries, the people store their assets in the form of digital currencies instead of their local currencies.

Mostly, it is happening in those countries where their local currencies are bearing inflation and dropping their value day by day which results in decrease the values of people's assets present their local currencies. So in that areas, the cryptocurrencies have been proved as a lifeline for them and also a saviour of their assets. Because, by converting their assets from their local currencies to digital currencies, they can maintain the value of their assets.

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Seeing all these things, we can say the role of digital currencies in sanctions invasions is very bright and if they keep on developing and improving, they will be able to solve the complex problems related to the assets of inflated countries. Also many of blockchain developers are working to build such tools which can be helpful to indicate sanctions invasions.

Conclusion

In conclusion, we can say that the Cryptocurrencies has a complex role in economics sanctions due to their unpredictable nature and volatility. But they help us to deal with the restrictions to validate transaction borderless, transparent and seamless. Also they provide numerous benefits to the restricted areas in performing different with them. So that was all about that topic and I hope it will be helpful for you. Stay tuned for more.

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Written by @abdullahw2

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