How Bitcoin Is the Answer to US Economic Sanctions for Nations | by Sylvain Saurel | Oct, 2021

Sylvain Saurel

More and more countries will seize this unique opportunity.

Image: Latuff

Bitcoin is unique in that it allows each individual to take control of their money destiny. All you have to do is place the fruits of your labor within its network, then possess the private keys to your Bitcoin, and finally run a full node on the network.

Individuals who follow this path with Bitcoin are called Bitcoiners. They are among the mentally strong people who can weather the short-term volatility of the Bitcoin price by focusing on the incredible future that awaits Bitcoin.

Much has been written about what Bitcoin brings to individuals, and even to businesses, but little about what Bitcoin can bring to nations.

The fact that El Salvador became the world’s first Bitcoin nation in early September 2021 is the start of a strong trend. There will be no turning back and more and more nations will follow El Salvador’s example in my opinion.

As you know, the current monetary and financial system is dominated by America. I would even say that this system is in the hands of America with the US dollar as the world’s reserve currency. This gives America an exorbitant privilege.

It is as if the rest of the world is paying for the standard of living of American citizens.

Even more than the US government, the Fed is calling the shots on the world economy. When the Fed prints money out of thin air in infinite quantities, other leading central banks, such as the ECB (European Central Bank), follow suit.

America exports its monetary inflation to the rest of the world as well.

Worse still, America gives itself the right to sanction any company or country trading in US dollars. This is part of the so-called extraterritoriality of US law. Some speak of a great “hold-up” on the world financial and banking system.

Let’s take the example of Iran.

The Europeans and the Americans had reached an agreement on the Iranian nuclear issue at the end of Barack Obama’s second term. Iran agreed not to go ahead with its nuclear weapons program, and America agreed to put Iran back into the global monetary and financial system.

A few months later, Donald Trump came to power.

Donald Trump decided to unilaterally break the Vienna agreement even though Iran had complied with all the clauses of the agreement. The European Union wanted to continue trading with Iran, but faced with America’s threats of sanctions on European companies, the EU finally gave in.

Since then, America has continued to impose an embargo on Iran in the hope that this will eventually trigger an uprising of the population against the regime.

Nothing of the sort happens, and in the end, it is the Iranian people who pay the price for American imperialism.

This is where Bitcoin can be an incredible game-changer for countries under US economic sanctions. Purely arbitrary sanctions. A country like Iran can decide to connect to the Bitcoin network by deciding to make mining a national priority.

By allocating electricity to Bitcoin mining, Iran will then be able to obtain Bitcoin as a reward.

The Bitcoin obtained will fly under the radar of US sanctions. The Fed and the US government do not have control over the Bitcoin network. No one has control over this decentralized network that belongs to all its users. Iran will therefore be able to increase its Bitcoin reserves.

Iran will then be able to decide to use this Bitcoin to purchase goods and services from countries and partners that wish to bypass the US embargo. This could be done in an ultra-discreet manner. For Iran, but also for its partners, this will be a much better option than accepting the Iranian currency, the rial, whose hyperinflation makes its use impossible.

The fact that the Bitcoin network is pseudonymous will allow Iran to do as it pleases. I am talking about Iran here, but this applies to any other country under US sanctions.

The tremendous liquidity of the Bitcoin network will then allow the partners of such a country to easily recover US dollars or bet on an increase in the price of Bitcoin to get even more money in the future. When you see the evolution of the price of Bitcoin since its creation, this is a very relevant strategy.

While Iran would have had to go through several banks within the banking system to carry out such transactions, this can be done in P2P mode on the Bitcoin network. The same way as a cash exchange in person. Something untraceable by the US regulator.

A country like Iran may also find it advantageous to build up ever-larger Bitcoin reserves to take advantage of the incredible future that awaits this system belonging to all its users. A way to make a gigantic transfer of wealth under America’s nose.

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