Iran and Cryptocurrencies: Is this the end of US Dollar Dominance?


 So much has been said about the situation between the United States and the Islamic Republic of Iran. The United States has accused Iran of developing weapons-grade Uranium that can be used for the launch of nuclear weapons deployable in the Middle East. Many think that this is the end of  US Dollar dominance. The reverse may be the case. 

So much so that the ultimate soft weapon the United States has (financial sanctions) has been deployed severally to deter the Islamic republic from weapons development. This has led to a certain détente that has kept a permanent impasse between the two countries.

To fully understand how best Iran would need to adjust itself as a nation-state, one would need to realize that cryptocurrencies and their underlying decentralized ledger technologies (DLTs) will play a big role in how they react to sanctions.

Iran Thinks that Cryptocurrencies will end US Dollar Dominance

Due to the current pseudonymous nature of cryptocurrencies and the fact that few technologies can be used to track the source and end-users of cryptocurrencies, the Islamic Republic of Iran is bound to use cryptocurrencies to evade certain types of financial sanctions.

It is based on this understanding that the Islamic Republic will try to use sanctions as a sort of buffer to enable the continuity of government as far as money is concerned. The United States and her allies are aware of this and they will try to limit this.

Already, the position on Iranian citizens mining cryptocurrencies shows that they also are aware of the kind of economic freedom that cryptocurrencies offer to everyone. The recent harsh limitations that the Islamic Republic implemented on its people is already an indication that the government has a special interest in cryptocurrencies and is already implanting certain strategies that will aid the use of cryptocurrencies for its government policies and possibly day-to-day operations.

The Use of Cryptocurrencies to Evade Sanctions Won’t Go Unanswered by the West

Although the allies at this time appear to be disorganized at the moment, they will certainly react and implement certain key decisions at the appropriate time. The truth about the situation concerning the Islamic Republic of Iran and other nation-states deemed hostile to western allies’ intentions is that a concerted effort to keep these nation-states in line will be done on a massive scale.

The main issue facing the western allies at the moment is the implementation of regulations that control Cryptocurrencies ad their underlying technologies. 

This will give way to a concerted effort to ensure that cryptocurrencies are regulated on a massive scale albeit though it may take some time to get the rules of engagement right.

The Islamic Republic of Iran though will try in the meantime to implement models that will enable the evasion of sanctions. 

There is no current international consensus on a global scale as regards the implementation of decentralized finance models hence the current confusion as to what to do with the technologies that decentralized assets deploy for their existence. 

Nation-States will try to Maintain the Current Order of Things

To remain economically relevant in a centralized World, the nation-states will never want to change the order of things. This is because they will all want to have a general pulse on current situations. As such they will want to maintain the current order of things.

Lest we forget, the United States is still the world’s only superpower when it comes to enforcing standards and it will take decades at the least for any nation to overtake the United States in any way in this regard. The United States is still the world leader when it comes to innovation. It is more likely that the United States will catch up and overtake any form of new technology once they get their act together at the regulatory level

That said, nation-states won’t try to lose their current statuses as regards finance. They will most likely follow the lead of the US Dollar Dominance when it comes to anything that any other nation-states in the better half of the twenty-first century.

The Arch Rivals of the Current World Order will Spend the Next few Decades trying to Outwit the Allies

The truth remains that the rivals to the hegemony that has been bathed in the sweat, tears, and blood of World War Two and the Cold War will try to gang up and use the emergence of new technologies to challenge the financial, moral and military authority of the allies. 

With this in mind, we have to understand that these challenges will be driven primarily not by a conflict of knowledge, but rather by a conflict of ideology. The major strategic advantage that the allies have is that their shared common ideologies, lifestyles and government systems will prevail into the twenty-second century.

US Dollar Dominance will Continue into the Twenty-Second Century

This is the true US Dollar dominance. Over the next few decades, we shall see an appeared fragmentation of the greenback but not a disappearance of its hegemony. Digital assets shall arise but the basic concept of freedom to use them within the softest of limits shall exist within the confines of western governments.

The very idea of cryptocurrencies based on belief systems shall be defeated ultimately because the freedom to be shall trump all belief systems whatever they may be. It is within this context that the United States Dollar Shall maintain its dominance.

Do you think that this is the end of the dominance of the United States Dollar?
Please let us know in the comments below!

About the author

Christopher is the Blockchain/DeFi Editor for E-Crypto News he also writes frequently about Crypto Gaming and Gambling. He is the author of the book "Profitable Cryptocurrency Gambling and Gaming: A Complete Guide." A content developer, Crypto-Enthusiast, and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
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Ethereum1,062.3 0.58 % 0.08 % 14.62 %
Tether1.000 0.12 % 0.04 % 0.03 %
USD Coin1.002 0.09 % 0.01 % 0.10 %
BNB217.54 0.32 % 0.09 % 9.33 %
Binance USD1.002 0.02 % 0.02 % 0.05 %
Cardano0.4544 0.74 % 0.61 % 8.80 %
XRP0.3145 0.65 % 0.09 % 14.37 %
Solana33.09 0.94 % 0.49 % 21.93 %
Dogecoin0.06640 0.64 % 0.80 % 3.17 %

Bitcoin (BTC) $ 19,267.53
Ethereum (ETH) $ 1,068.34
Tether (USDT) $ 1.00
USD Coin (USDC) $ 1.00
BNB (BNB) $ 218.36
Binance USD (BUSD) $ 1.00
Cardano (ADA) $ 0.456377
XRP (XRP) $ 0.316404
Solana (SOL) $ 33.39
Dogecoin (DOGE) $ 0.066796