WASHINGTON — Crypto currencies pose a threat to U.S. sanctions and the dollar’s dominant role in the global economy, the Treasury said this week, and the U.S. has to adopt more safeguards to protect national security.
One of the biggest threats arising from new forms of electronic money, U.S. officials say, is that they could weaken sanctions on countries, companies and individuals the U.S. seeks to punish. The U.S. has more than 9,000 sanctions in place.
“The advent of crypto currencies makes it harder for sanctions to be effective,” deputy U.S. Treasury Secretary Wally Adeyemo told a Senate committee at a hearing this week. His testimony coincided with a Treasury report on how crypto could undermine sanctions.
Another worry: Digital currencies such as Bitcoin
enable individuals and groups to engage in cybercrimes and circumvent the traditional dollar-based…