Countries Such as North Korea Use Cryptocurrency to Bypass Sanctions, Experts Warn

17

Bypassing economic sanctions is a difficult task. Various countries are exploring different methods in this regard. It appears Venezuela, Iran, and North Korea show a keen interest in using cryptocurrencies. They are not using Bitcoin directly, but rather creating their own form of money.


More National Cryptocurrencies?

Venezuela has set a peculiar cryptocurrency-related precedent. Its Petro currency can be used for very few purposes as of right now. Even so, experts are convinced this form of money is a blatant attempt at bypassing sanctions imposed by the United States. This form of digital money requires no approval from banks or governments to be used accordingly. Other nations are looking to issue their own native currencies as well.

Iran is seemingly the next country to pursue this option. This is a response to a failed deal to lift sanctions imposed by the US earlier this year. It did not take long for Iranian government officials to begin discussing cryptocurrencies. Avoiding US Dollar transactions becomes possible when using this new form of money. To accommodate this shift, the groundwork for a domestic digital currency is being created.

Not much is known about this Iranian cryptocurrency. Its purpose seems clear, but there must be more to this project. There is no official name for this currency nor any timeline related to development progress. The head of the Iranian Parliamentary Commission for Economic Affairs aims to disrupt global money transfers with this new currency. The bigger question is what will give this currency its native value. It can be pegged to fiat currency, domestic resources, or something else entirely.

The North Korea “Threat” Seems Real

Developments in Venezuela and Iran are less concerning compared to North Korea. It is expected the latter country is pursuing a similar digital currency at this time. North Korea has allegedly been involved in hacking South Korean cryptocurrency trading platforms over the years. None of those claims have ever been officially backed up by solid evidence.

Concerns regarding Koryo Coin appear more than warranted. Rumors regarding a cryptocurrency for North Korea first began circulating in April. However, it was shrugged off as an April Fool’s joke later on. Despite this attempt at a joke, the concept cannot be dismissed so easily. Instead, experts are rather concerned about North Korea’s potential plans for a domestic cryptocurrency.

A recent announcement only fuels these ongoing rumors. The upcoming blockchain conference in Pyongyang will discuss distributed ledger technology and cryptocurrencies. It is believed the country’s domestic cryptocurrency plans will be unveiled at that time. A seven-day event like this cannot occur without express approval by North Korean leader Kim Jong Un.


Image courtesy of ShutterStock

Tags: , , , ,