Use Of Digital Currencies By Malign Actors Could Harm Efficacy Of US Sanctions - Treasury

WASHINGTON (Pakistan Point News / Sputnik - 19th October, 2021) The growing use of digital currencies and other alternative payment platforms could harm the efficacy of US sanctions on malign actors who can use the new technologies to avoid detection, the Treasury Department said in the 2021 review of its sanctions programs published Monday.

"In addition, technological innovations such as digital currencies, alternative payment platforms, and new ways of hiding cross-border transactions all potentially reduce the efficacy of American sanctions... We are mindful of the risk that, if left unchecked, these digital assets and payments systems could harm the efficacy of our sanctions," the Treasury Department said.

The Treasury Department said these technologies offer malign actors opportunities to hold and transfer funds outside the traditional dollar-based financial system. The digital currencies also empower US adversaries seeking to build new financial and payments systems intended to diminish the Dollar's global role, the Treasury Department added.