Sanctioned Countries Seek Alternative Financial Infrastructure to Transfer Funds Across Borders

03/01/2023 06:57 • AI & Tech Insights • 108 views

On March 1, Yaya Fanusie, the policy director of the Cryptocurrency Lobbying Organization “Cryptocurrency Innovation Committee (CCI)”, said in an interview that the sanctioned countries are seeking to conduct transactions on financial infrastructure not controlled or seriously affected by the United States in order to transfer funds across the border more freely; If the United States continues to “wait and see” and lags behind in the adoption of CBDC, this may cause “trouble” and lead to unpredictable “geopolitical impact” over time.

The policy director of the Encryption Innovation Commission called on the United States to stop its “wait-and-see” attitude towards CBDC

Interpretation of the news:

In a recent interview, Yaya Fanusie, the policy director of the Cryptocurrency Innovation Committee (CCI), voiced concerns over sanctioned countries seeking alternative financial infrastructure for cross-border transactions. Fanusie stated that these countries are looking for financial infrastructure that is not controlled or impacted by the United States, which would enable them to transfer funds more freely.

Sanctioned countries are typically subjected to strict controls on international financial transfers, which causes them to become creative in finding alternative ways to bypass these restrictions. Recently, these countries have started looking towards the financial and technology sector to create innovative solutions. Cryptocurrency and blockchain technology have been at the forefront of this effort, as they provide an avenue for transferring funds without the need for traditional banking and financial systems.

Fanusie pointed out that the adoption of Central Bank Digital Currency (CBDC) by the United States would play a key role in preventing these countries from moving away from the US-controlled financial infrastructure. He argued that if the US continues to “wait and see” in the adoption of CBDC, then it may lead to unpredictable “geopolitical impact” over time.

The potential impact of CBDC adoption in the United States is significant, as it could lead to major changes in the global financial and economic system. China has already launched its digital Yuan, and other countries are actively exploring the idea of CBDC. If the US fails to act on this, it could cause a shift in power dynamics, with the US losing its dominant position in the global financial system.

In conclusion, the adoption of CBDC is a crucial step for the United States to maintain its position in the global financial system and prevent sanctioned countries from moving towards alternative financial infrastructure. The consequences of not adopting CBDC are unpredictable, but it could cause significant geopolitical impacts in the long run. The United States must take action to ensure that it remains at the forefront of financial innovation and retains its dominant position in the global financial system.

Keywords:

Cryptocurrency Innovation Committee: A lobbying organization that works on policy advocacy for cryptocurrencies.

Sanctioned Countries: Countries that are under economic sanctions for political reasons.

Financial Infrastructure: A system that provides financial services, such as banks and financial institutions.

CBDC Adoption: The decision for a specific country to adopt Central Bank Digital Currency.

Geopolitical Impact: The effects of geopolitical events on the economic and financial systems globally.

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