A new study by the FDD, Foundation for Defense of Democracies has stated that adversaries of the United States are looking to utilize cryptocurrencies as a form of ‘economic war’. Countries such as Iran, China, Venezuela and Russia are looking to cryptocurrencies as a way to circumvent sanctions and trading regulations. The FDD argues that these nations plan to leverage cryptocurrencies to upset the US dollar.
China was labeled as the largest threat since it is the most technologically advanced. China is already in a trade war with the United States and could adopt a digital currency to compete with the US dollar. The country has made moves to become even more heavily into blockchain technology, already having more than 50% of Bitcoin mining activity originating from the country, they are also working on a government-owned cryptocurrency. They also have many successful programs across the country, leading the world in blockchain-related patents.
Russia is also working on its own digital currency, which will be “out in the open”. Nobody really has any idea of the progress being made. There were reports that Russia was planning on building a cryptocurrency trading center on the border between Russia and China. Iran has also recently announced they plan to move into the cryptocurrency market by building their own coin based off gold.
Venezuela has already issued its own cryptocurrency, which has largely failed. pegged to the country’s oil reserves, the coin has largely disappeared from the markets. China and its allies are looking to create an alternative to the supremacy of the dollar worldwide. Cryptocurrencies, by offering near-instantaneous transaction speeds, security, and traceability, provide these nations with the means to cultivate economies separate from the United States.
The cryptocurrency world will be an interesting landscape as widespread adoption takes the forefront, with even the United States making some form of acknowledgement by signing a patent to work with Ripple Labs just last week.