Can Cryptocurrency Protect Countries from US Sanctions?

[Suba]

I often read articles about crypto and Bitcoin being adopted to protect a country's economy from harsh US sanctions, preventing it from being shackled or experiencing severe economic damage.

Many governments view crypto and Bitcoin as protection from US sanctions, but often, sanctioned countries lose confidence in their local currencies, further devaluing them. In Iran and Venezuela, which are facing a flight to safety, Bitcoin is more trusted by the public to protect their assets. However, I wonder if Bitcoin and crypto can fully protect the economy from US sanctions?

 

[Webster]

I often read articles about crypto and Bitcoin being adopted to protect a country's economy from harsh US sanctions, preventing it from being shackled or experiencing severe economic damage.

Many governments view crypto and Bitcoin as protection from US sanctions, but often, sanctioned countries lose confidence in their local currencies, further devaluing them. In Iran and Venezuela, which are facing a flight to safety, Bitcoin is more trusted by the public to protect their assets. However, I wonder if Bitcoin and crypto can fully protect the economy from US sanctions?

Hehehe, nope.

Why? Because at some point you have to cash those cryptocurrencies in, my friend, and most every bank in the world works through the SWIFT system (basically, SWIFT is a financial clearinghouse countries use for banking services which honors sanctions issued by various countries like the U.S.) and no country wants to upset the U.S. by allowing a sanctioned person/business/group to use their banks, especially if they have U.S. branches.

Now, that doesn't mean they can't transfer it into their own currencies but even there at some point its' going to go through a SWIFT-operating bank or financial institution, at which point they're going to honor (or they should honor) said sanctions.

 

[Augusta]

I think Cryptocurrencies can offer ways for countries to by pass financial systems and US sanctions to some extent , like using crypto for transactions or trading with other non-sanctioned countries. But it's complex , many crypto exchanges follow international rules.