US Deputy Treasury Secretary, Wally Adeyemo, has stated that central bank digital currencies (CBDCs), such as Russia’s digital Ruble, do not constitute a danger to United States prohibitions. In an appearance with CNBC on Wednesday, Adeyemo asserted that the United States Dollar will endure being the predominant world currency despite the rapid growth of digital currencies worldwide.
Even though digital assets represent potential in a variety of ways for the United States economy, Adeyemo stressed the fact that they are also related to a number of issues, such as laundering money. However, there really are ways to counteract this to reap the benefits of the expanding industry’s growth. The official stated that they believe they will be able to manage this issue in the long run by working collaboratively with governments across the world and by calling on the developers of digital assets to adhere more closely to the norms around anti-money crime.
Adeyemo also stated that digital currencies issued by worldwide monetary authorities do not pose any problems in terms of U.S. sanctions, which he believes is correct. Because the global financial system is still intertwined, he feels that even if a digital Ruble or other virtual currencies were introduced, there would still be room for its sanctions to have an influence on the digital economies.
Russia And The United States’ Sanctions
Afterward, the official stated that Russian enterprises conduct a significant amount of international business, with much of it conducted in U.S. Dollars with U.S. banking institutions since “the American sector is the largest economy on the globe.” The official stated that as long as this is the case, and as long as they make the necessary investments, they will continue to have the capacity to use the restriction system to ensure that the very thing that it was designed to avoid does not take place.
Adeyemo’s words came shortly after Russian businessman Oleg Deripaska, who has been sanctioned by the United States, called on the Russian authorities to embrace Bitcoin (BTC) as a weapon to escape U.S. sanctions and undercut the value of the United States Dollar. According to him, the United States had long ago recognized that unregulated digital payments had the potential to not only undermine the efficacy of the entire system of economic restrictions but also to bring the Dollar down as a whole. He made this argument last month.
In October, Russia’s deputy minister of foreign affairs underlined the country’s ambitions to lower the weight of the U.S. Dollar in the country’s overseas reserves as part of the country’s strategy to overcome the problems created by U.S. government restrictions. In recent years, the United States has imposed a series of sanctions against Russia, citing a variety of reasons, including the alleged poisoning of political opponents, election involvement, and cyber-attacks.