Trump's cryptocurrency policy fosters sanctions evasion, weakening the dominance of the dollar

According to Jayati Ghosh, an economics professor at the University of Manchester, in an article for the Bangkok Post, the Trump administration has vigorously promoted the deregulation of cryptocurrencies and has advocated for dollar-pegged stablecoins through the GENIUS Act, while refusing to develop central bank digital currencies. However, this series of policies is producing 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 massively evade U.S. economic sanctions.

Among them, Iran has introduced cryptocurrencies into the toll collection system of the Strait of Hormuz, with daily revenues estimated to reach up to $36 million; Russia, on the other hand, is using cryptocurrency exchanges to bypass asset freeze orders and fund military procurement.