Washington considers it necessary to modernize its system of economic and financial sanctions, the effectiveness of which is weakened in particular by the development of cryptocurrencies, the US Treasury said on Monday, following the review of these measures by the Biden administration.
“While sanctions remain an essential and effective policy tool, they are also placed in the face of new challenges, including the growing risks associated with new payment systems, the growing use of digital assets and cybercriminals,” the Treasury said in a statement. communicated.
Sanctions imposed by the Treasury are aimed at preventing foreign persons or entities, accused, for example, of threatening American security or obstructing human rights in their own country, from gaining access to the American banking and financial system.
But “technological innovations such as digital currencies, alternative payment platforms and new ways of hiding cross-border transactions all potentially reduce the effectiveness of US sanctions,” the Treasury said in its report.
“These technologies offer opportunities for malicious actors to hold and transfer funds outside the traditional dollar-based financial system,” he added.
“We are aware of the risk that these digital assets and payment systems could undermine the effectiveness of our sanctions if they are not controlled,” adds the Treasury.
The United States has greatly increased its use of economic sanctions since the attacks of September 11, 2001. The number of sanctions has increased tenfold in 20 years, according to this report, from 912 in 2000 to 9,421 in 2021.
Thus, “the US government must adapt and modernize the underlying operational architecture by which sanctions are deployed,” said the Treasury, adding that “when used effectively, sanctions have the capacity to disrupt, deter and to prevent actions that undermine the national security of the United States ”.
“Sanctions are a fundamentally important tool in advancing our national security interests,” Deputy Treasury Secretary Wally Adeyemo said in the statement. “We are committed to working with partners and allies to modernize and strengthen this essential tool. “
Wally Adeyemo is due to be heard by the Senate Banking Committee on the subject Tuesday at 10 a.m. (2 p.m. GMT).