Iran, North Korea and Venezuela turn to cryptocurrency to get around US sanctions, experts warn

American rivals are turning increasingly to bitcoin-style cryptocurrencies after their economies have been brought to their knees thanks to paralyzing US sanctions, warned the experts

Iran, North Korea, Russia and Venezuela are investing all in technology in an attempt to thwart US economic power – and one expert says that these nations are forming alliances through technology.

A form of digital currency, cryptocurrency uses cryptography to protect transactions and control the creation of new units. It uses cryptography, a form of secret code originating from the Second World War, to process transactions securely. His greatest interest is that it is not traceable.

U.S. the sanctions work by putting bans on relationships and transactions with people, nations and companies.

These bans are often applied with the help of the main financial institutions.

But cryptocurrencies do not operate within this established system. In fact, bitcoins and other cryptocurrencies have been invented in part to circumvent the existing regulated financial system.

This means that nations such as Iran that use or control such a currency would allow it to circumvent certain measures, such as banning US dollars or even facilitating arms deals.

In May, the United States concluded an agreement to lift sanctions against Iran in exchange for restrictions on its nuclear program – a plan that President Donald Trump has repeatedly bombarded.

HACKER STEALS CRIPTOCURRENCE OF USERS OF MYETHERWALLET

Soon after, Mohammad Reza Pourebrahimi, the head of the Iranian Parliamentary Commission for Economic Affairs, spoke about cryptocurrencies as a way to prevent US dollars are exchanged, as well as a possible replacement of the SWIFT international payment system.

And Alireza Daliri, a senior scientific and technological official of the Iranian Presidential Office, said: "We are trying to prepare the reasons for using a national digital currency in the country.

" This currency would facilitate the transfer of money (to and from) anywhere in the world.

"It can help us when it comes to sanctions."

Darren Parkin, editorial director of the Coin Rivet cryptocurrency news site, described how the adoption of cryptocurrencies is helping to push economic alliances between these states.

He referred to the example of Iran and Russia working together to overcome the sanctions that affect them both

He told Fox News: "The problem that the United States has is if they have to do with fiat currency (which a government has declared to be legal tender) can control the effect of the sanctions

BITCOIN IS BETWEEN A HUGE UPSWING IN RECYCLING MONEY, SAYS A NEW RESEARCH [19659005] "But if countries use cryptocurrency they have fallen under the radar of what the United States can see.

"They were pushed underground."

Venezuela also received help from Moscow when it was hit by sanctions, leading to food shortages, rising prices, health care collapse and crime.

In February, the South American nation launched a new cryptocurrency called petro that Nicolas Maduro, the socialist leader of Venezuela, described as "kryptonite" against the power of the US government.

executive at a Russian state bank states that the Kremlin oversaw the creation of the petro after President Vladimir Putin signed it last year.

  FILES - In this photo of April 26, 2018 issued by the Kremlin press service Monday, 27 August 2018, Russian President Vladimir Putin rests during a mini-break in the Siberian region of Tyva, Russia. A Russian state television channel has a new weekly news program dedicated to President Vladimir Putin. Rossiya 1 aired the first episode of "Moscow, Kremlin, Putin". Sunday, 2 September. He emphasized Putin's work to deal with various crises and stay in touch with ordinary Russians. (Alexei Nikolsky / Sputnik, Photo of the Kremlin Pool via AP, File)

In February, Venezuela launched a new cryptocurrency called petro; an anonymous executive in a Russian state bank states that the Kremlin has overseen the creation of the petro after Putin (pictured) signed last year

(AP)

The source told Time: "People close to Putin told him that this is how to avoid sanctions.

" That's how the whole thing started. "

Last month Vladimir Gutenev, the first deputy head of the State Duma's economic policy committee, said that Russia should conduct cryptocurrency transactions related to the value of gold to frustrate" US attempts to counteract business on Russian weapons and civil goods. "

" And I'm sure this will be a very interesting option for China, India and other states, "he added.

Meanwhile, Priscilla Moriuchi, a former security official NSA computer science, told The Hill North Korea estimated earnings of $ 15 million to $ 200 million by digging and selling cryptocurrencies.

It is also believed that the army of hackers in Pyongyang has stolen cryptocurrency from organizations and individuals all over the world 19659005] As if states opposing US cryptocurrency were not worrying enough, analysts warned that bitcoins and other cryptocurrencies are already being used to secretly move money between sympathizers and terror cells around the world

Nikita Malik, author of a recent report by the UK-based Henry Jackson Society, on online extremism called Terror In The Dark, said: "The authorities must urgently move to increase their knowledge of the activities of boxers in cyberspace and their use of technologies like bitcoins.

"By fundraising and online financial transactions, terrorists and other criminals can avoid interference from financial regulators or other third parties who might otherwise take measures to prevent their operations.

" The regulation in this sector must move carefully if we want to balance freedom with guard against threats to our security – but the time has come to deny extremists the space they need online to plan for new atrocities. "

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