Impact of Cryptocurrencies on Unilateral Sanctions

Abstract

Although it takes the equality of states as an international principle, the international system is an unequal system in which power is essential. Unilateral sanctions, such as those of the United States government that violates international law, are examples of this inequality. Governments are always looking for ways to bypass these unjust sanctions. The formation of cryptocurrencies as a means of facilitating financial transfers beyond the control of regulators raises the question of whether the specific features of this means could also serve as a means of bypassing sanctions. And will cryptocurrencies be able to end the United States dollar’s dominance of international trade? In response, while such a capability exists in theory, and blockchain technology and cryptocurrency, as one of its essential products, can transact financially away from the dominance of the global economic system, this does not imply that the technology has the full potential to bypass the global financial system. Because the application of this technology in bilateral state interactions necessitates political will, and only a few countries worldwide have embraced this.

Keywords

• cryptocurrency
• blockchain
• sanctions
• international law
• international community