WASHINGTON DC – US geopolitical opponents are implanting blockchain technology to combat American financial power, said the new report by the American Foundation for the Defense of Democracy (FDD).
With the adoption of digital currencies around the world, efforts are under way to build new money transfer systems that operate outside of conventional banking infrastructure, FDD wrote in a comprehensive analysis released on Thursday.
The report points out that the governments of Russia, China, Iran and Venezuela are experimenting with the technology that underpins the cryptography market.
These countries are prioritizing blockchain technology as a key component of their efforts to combat US financial power, the report claimed.
“Russia, Iran, and Venezuela have initiated blockchain technology experiments that their leaders paint as tools to offset U.S. financial coercive power and increase sanctions resistance. China is also wary of U.S. financial power and the ever-present threat of sanctions against Chinese officials,” the study said.
According to the document, the efforts of the four nations go beyond simply trying to circumvent sanctions because they seek to reduce the power of unilateral and multilateral sanctions through the development of alternative payment systems for global trade.
The authors of the report have noted that the position of US influence is not necessarily permanent.
As US Federal Reserve Governor Lael Brainard said, “Even if cryptocurrencies prove to have a very limited role in the future, the technology behind them is likely to live on and offer improvements in the way we transfer and record more traditional financial assets.”
“The target timeline may be two to three decades, but these actors are developing the building blocks now. They envision a world in which cryptocurrency technology helps them eclipse U.S. financial power, much the way that the dollar once eclipsed the British pound. Washington, therefore, must understand the benefits and threats posed by new financial technologies, maintain the integrity of global finance, and cultivate the expertise and influence to lead in what is becoming an international crypto race,” the FDD concludes.