U.S. foes are weaponizing cryptocurrency says new report

A new study from the Foundation for Defense of Democracies (FDD) claims cryptocurrencies are being used by U.S. adversaries to circumvent the nation’s geopolitical supremacy. 

The report—published the same day that President Trump slammed Bitcoin on Twitter—focuses on Venezuela, China, Iran, and Russia, the four countries that are either subject to or most at risk of U.S. sanctions.

Venezuela has already launched a national crypto and China recently accelerated its plans to do the same. Russia, meanwhile, is piloting multiple blockchain projects, seeking to develop a strategic advantage, and—on Saturday—Iran unveiled plans for a gold-backed cryptocurrency.

The FDD study warns that a national digital currency issued by any these nations—particularly one tied to a major commodity, such as oil—may make sanctions much harder to enforce. Washington, it said, needs to “cultivate the expertise and influence to lead in what is becoming an international crypto race.”