Washington considers it necessary to modernize its system of economic and financial sanctions, whose effectiveness is weakened by the development of cryptocurrencies, indicated the US Treasury.
“If sanctions remain an essential and effective political tool, they also face new challenges, in particular the growing risks linked to new payment systems, the increasing use of digital assets and cybercriminals,” he added.
The sanctions taken by the Treasury seek to prevent foreign persons or entities, accused for example of threatening US security or obstructing human rights in their own country, from accessing the US banking and financial system.
But “technological innovations such as digital currencies, alternative payment platforms and new ways of hiding cross-border transactions potentially reduce the effectiveness of US sanctions,” the Treasury details in its report.
“These technologies offer malevolent actors opportunities to own and transfer funds outside of the traditional dollar-based financial system,” he said.
“We are aware of the risk that, if not controlled, these digital assets and payment systems could affect the effectiveness of our sanctions,” added the Treasury.
USA It has increasingly resorted to economic sanctions since the attacks of September 11, 2001. The number of sanctions multiplied by 10 in 20 years, according to the report, from 912 in 2000 to 9,421 in 2021.
Thus, “the US government must adapt and modernize the underlying operational architecture by which sanctions are deployed”, highlights the Treasury, specifying that “when used effectively, sanctions have the ability to disrupt, deter and prevent actions that affect the national security of the United States ”.
“Sanctions are a fundamentally important tool in advancing our national security interests,” Deputy Treasury Secretary Wally Adeyemo said in the statement.
“We are committed to working with partners and allies to modernize and strengthen this essential tool,” he added.
Adeyemo is due to be heard by the Senate banking committee on this issue on Tuesday.
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