{"id":19934,"date":"2023-04-17T11:23:02","date_gmt":"2023-04-17T11:23:02","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-treasury-secretary-janet-yellen-acknowledges-sanctions-weaponization-could-hurt-dollar-hegemony-economics-bitcoin-news\/"},"modified":"2023-04-17T11:23:02","modified_gmt":"2023-04-17T11:23:02","slug":"us-treasury-secretary-janet-yellen-acknowledges-sanctions-weaponization-could-hurt-dollar-hegemony-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-treasury-secretary-janet-yellen-acknowledges-sanctions-weaponization-could-hurt-dollar-hegemony-economics-bitcoin-news\/","title":{"rendered":"US Treasury Secretary Janet Yellen Acknowledges Sanctions Weaponization Could Hurt Dollar Hegemony \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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U.S. Treasury Secretary Janet Yellen talked about the dangers that sanctions based on the U.S. dollar might pose for the hegemony of the currency in international markets. According to Yellen, the government tries to use sanctions \u201cjudiciously,\u201d as they can create a desire to find alternatives to the U.S. dollar.<\/strong><\/p>\n

U.S. Treasury Secretary Yellen Talks Dangers of Dollar Weaponization<\/h2>\n

Janet Yellen, Treasury Secretary of the United States, has referred to the possible effects that continued use of sanctions could exert on the hegemony of the U.S. dollar in international markets. In an interview reviewed by Reuters, Yelled acknowledged that such a danger does exist in the long term.<\/p>\n

On the issue, she stated<\/a>:<\/p>\n

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So, there is a risk when we use financial sanctions that are linked to the role of the dollar, that over time it could undermine the hegemony of the dollar, as you said. But this is an extremely important tool we try to use judiciously.<\/p>\n<\/blockquote>\n

Yellen recognizes that such sanctions push countries like China and Russia to seek alternatives to the U.S. dollar, in order to conduct trades even when affected by these sanctions. However, she also explained that this is no easy task due to the unique traits of the dollar. Yellen expanded on this, declaring:<\/p>\n

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We haven\u2019t seen any other country that has the basic infrastructure \u2013 institutional infrastructure \u2013 that would enable its currency to serve the world like this.<\/p>\n<\/blockquote>\n

This is the same conclusion that a report<\/a> from the Bank of Russia, titled \u201cReview of the Russian Financial Sector and Financial Instruments\u201d reached, stating that substituting the U.S. dollar will be difficult due to the current structure of foreign trade.<\/p>\n

Sanctioned Countries Seek Alternatives<\/h2>\n

Even with all the difficulties, countries with individuals and entities sanctioned by the Office of Foreign Asset Control (OFAC) like China, Russia, and Iran, are starting to develop integration policies that allow them to conduct trade away from the U.S. dollar.<\/p>\n

China and Russia have already started to conduct<\/a> settlement transactions using the Chinese yuan, leveraging specially designated banks as clearing entities to facilitate these payments. In his recent visit to China, Brazilian President Luiz Inacio \u2018Lula\u2019 da Silva called<\/a> for developing nations to abandon the U.S. dollar and for BRICS to establish a new currency.<\/p>\n

The insurance of a BRICS currency will be debated at the next BRICS summit, which will be held in South Africa in August, according to statements<\/a> from a Russian State Duma official. Russia and Iran are also finalizing an agreement<\/a> to deepen their trade collaboration, avoiding the crippling sanctions that the U.S. has enacted against them.<\/p>\n

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\nTags in this story
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Bank of Russia<\/a>, Brazil<\/a>, brics<\/a>, China<\/a>, Dollar Hegemony<\/a>, Iran<\/a>, Luiz Inacio Lula da Silva<\/a>, OFAC<\/a>, Office of Foreign Asset Control (OFAC)<\/a>, Russia<\/a>, treasury secretary janet yellen<\/a>, U.S. dollar<\/a>, U.S. Treasury<\/a><\/div>\n<\/div>\n

What do you think about U.S. Treasury Secretary Yellen\u2019s stance on sanctions and the future of the U.S. dollar? Tell us in the comment section below.<\/strong><\/em><\/p>\n

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\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Alexandros Michailidis \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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