With U.S. President-elect Donald Trump set to take office next month, Russian experts are growing concerned about his potential to impose sanctions on stablecoin issuers. In an interview with News.ru, Artem Zvezdin, a financial analyst, warned that tokens such as USDT could face repercussions similar to the freezing of Russia’s gold and foreign exchange reserves in 2022.
What Are Stablecoins and Why Do They Matter to Russia?
Zvezdin explained that billions of Russian assets were frozen by Western nations after the conflict in Ukraine began. He suggested that stablecoins, especially those pegged to the U.S. dollar, might face similar consequences. Issuers could face a difficult choice: unpeg from the dollar or risk having their assets completely frozen.
Stablecoins as a Tool for Evasion
Many Russian firms have increasingly relied on stablecoins to facilitate international trade. This strategy helps them bypass Western sanctions and avoid using Bitcoin (BTC), which the Russian Central Bank has openly criticized. The question now arises whether these firms will continue to operate without facing further sanctions.
How Might Trump Respond to Stablecoin Use?
Zvezdin speculated that Trump could impose sanctions on companies that are directly accountable to the U.S. government. If this happens, stablecoin holders might find their assets completely useless, reduced to “a few numbers on a screen.”
The Mechanisms Behind Stablecoins’ Dollar Peg
Stablecoin issuers maintain their dollar peg by purchasing traditional financial assets like U.S. Treasury bonds and stocks. This ensures that the value of one stablecoin is equal to one dollar. Zvezdin warned that sanctions could disrupt this balance, destabilizing the value of these tokens.
U.S. Concerns About Cryptocurrency’s Role in Sanctions Evasion
The U.S. government is increasingly concerned about how crypto is being used to evade sanctions. Washington believes that countries such as Russia, Iran, and North Korea are using cryptocurrencies for cross-border payments. Trump may see the growing use of crypto as a threat to the U.S. dollar’s dominance in international trade.
The Growing Role of Cryptocurrency in Russia
Crypto adoption is rising rapidly in Russia. Many Russian firms now use stablecoins as a preferred tool for international trade. Furthermore, Russia’s expanding crypto mining industry could strengthen the country’s economic position. However, home-based mining has put a strain on power grids, raising concerns among lawmakers about its long-term impact on the economy.
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