Cryptocurrency and its role in Economic Sanctions

Essay from the year 2021 in the subject Politics - Topic: Globalization, Political Economics, grade: 28/30, University of Siena, language: English, abstract: This paper provides an overview on the cryptocurrency industry and how it started its journey from back then till now or what is the position of this new phenomenon in the international financial and monetary system. Undoubtedly every new phenomenon has Pros and Cons, and cryptocurrency is not an exceptional to it, so we analyze the advantages and disadvantages which a cryptocurrency can brings up. Through this paper we examine Pros and Cons of these currencies in more details by using specific case studies data and comparative cases. In the age of modern globalization, cryptocurrency is becoming prevalent. Cryptocurrencies are a subset of digital currency that encompasses a revolutionary technology. It has the potential to shift economic and political realms. Most of countries have reacted positively to this new form of currency, which are not monitored by any authority. Of course, some governments have also responded negatively to the cryptocurrency because it facilitates financial system for the illegal activities through its anonymity. Certain countries are more encouraged to the adoption of cryptocurrency. Through three different case studies, Russia, Iran and Venezuela, it shows evidently the relation between cryptocurrencies and international economic sanctions, or in another word cryptocurrencies are clearly helping the sanctioned countries to evade the economic sanctions.