Trump's Crypto Policy Fuels Sanction Evasion, Undermines Dollar Dominance

On April 21, Jayati Ghosh, an economics professor at the University of Manchester, wrote in the Bangkok Post that the Trump administration’s strong push for the deregulation of cryptocurrencies and its promotion of dollar-pegged stablecoins through the GENIUS Act, while rejecting the development of central bank digital currencies, is having a self-destructive effect. By 2025, illegal cryptocurrency trading volume is expected to increase by over 160% year-on-year, with countries like Russia, Iran, and North Korea using cryptocurrencies to significantly evade U.S. economic sanctions. Iran has introduced cryptocurrencies into its Strait of Hormuz toll collection system, generating estimated daily revenues of up to $36 million, while Russia is using cryptocurrency exchanges to bypass asset freezes and fund military procurement.