Former Department of State official, Anja Manuel, has warned that if the US does not maintain its dominance in financial innovation and payments, it could impact its national security policy, specifically in terms of sanctions.
Manuel stated that as the US is one of the largest global leaders in payments, it is able to enforce sanctions on "bad actors" such as Iran and North Korea. However, if the US fails to continue leading in innovation under clear rules, it could lose its national security controls.
Manuel noted that China is catching up on dominance in mobile payments "both in sophistication and scale," and if Chinese payment solutions gain a dominant foothold in the developing world, sanctions will become much harder.
The US enforces sanctions through the Office of Foreign Assets Control of the Treasury Department, but Manuel said sanctions generally work "in a world of traditional banks" and "responsible" blockchain firms, but not when there exist financial technology firms available to individuals looking to circumvent restrictions.
Manuel suggested that other countries such as Singapore, the UK, and the EU are getting their act together in terms of regulation, but the US has been slow to implement a regulatory framework.
During Coinbase's "Crypto435" campaign, which promotes pro-crypto policies and candidates in the US, Anja Manuel, a former Department of State official, warned that the US must maintain its dominance in financial innovation and payments to preserve its national security policy, specifically with regard to sanctions.
Manuel's comments echoed those of Coinbase CEO Brian Armstrong, who has called for action among pro-crypto US voters following the exchange's receipt of a Wells notice in March, which suggests a potential enforcement action from the SEC. Armstrong has also been critical of the SEC, demanding "clear rules to regulate the crypto industry."
Also, read - FTX Bankruptcy: Personal Info of 10 Million Users at Risk, Says Former Secret Service Official
