top of page
Search

Sanctions could speed up the adoption of bitcoin as legal tender



Sanctions are often used as an inconspicuous means of control by international organizations against a country. This concept has also been used by states against other countries as a means of control. An example is the United States, which has issued sanctions against Iran and North Korea . These sanctions often take the form of trade and financial embargoes, which cause the affected nations considerable economic hardship.


Countries that are cut off from dollar trades, such as Iran, North Korea and Cuba, are most affected. This is causing serious economic problems for the affected countries, because the US dollar is at the moment the world's reserve currency. And many other countries are on the verge of imposing these sanctions, where one wrong move could set off their avalanche. El Salvador's success in adopting bitcoin as legal tender in the face of growing international pressure could serve as an incentive for other countries to prepare for the big leap.


The absence of an intermediary for bitcoin and other cryptocurrencies represents an interesting option for these countries, and the loss of value due to inflation is another factor that upsets the balance in favor of digital assets. Financial experts believe that the decentralized nature of cryptocurrencies is a viable alternative and offers a chance for real independence. A hot example of recent days is Russia, which is currently facing sanctions due to growing tensions with Ukraine. Although the country has reserves in dollars, the government has already begun the process of reducing them. And recent reports suggest that the Russian government is not going to ban cryptocurrencies and has taken steps to give the digital asset class legal status. Vladimir Putin himself has suggested in the past that cryptocurrencies could be used to settle oil contracts.

<