Imposed largely by the United States and the European Union, there are several sanctions that prohibit countries like Venezuela, Iran, Russia, and others from certain financial activities and markets.
For example, Venezuela is banned from selling its highly downgraded and close-to-default government bonds for US dollars. Russia and Iran have also experienced difficulties in accessing the global financial markets due to these sanctions. Iran being cut off from the international SWIFT system since 2012, is a good example.
Countries under these special restrictions have been constantly searching for a way to bypass or circumvent them in order to access global markets. Most recently, this has led to the creation of state-run cryptocurrencies, with Venezuela’s el Petro taking the lead. The creation of this state-run crypto is to enter the global markets, circumventing U.S and E.U sanctions.
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.