• U.S. sanctions on bad actors rely heavily on American dominance in financial innovation and payments.
• Anja Manuel, a former Department of State official warned that without a clear regulatory framework the U.S. could lose its edge to China in mobile payments, both in sophistication and scale.
• She argues that other thoughtful countries have already taken action to ensure their compliance with global sanctions regulations while the U.S. has been slow to do so, relying mostly on enforcement actions from the SEC instead of creating an effective framework for regulation.
U.S Sanctions Rely On Financial Innovation
According to former Department of State official Anja Manuel, if the United States isn’t able to maintain its dominance in financial innovation and payments, it could affect its national security policy, specifically on sanctions. Speaking to Coinbase CEO Brian Armstrong and listeners in an April 21 Twitter Spaces discussion, Manuel said that because the U.S was one of the biggest global leaders in payments, it allowed the government to enforce sanctions on “bad actors” like Iran or North Korea.
China Gaining On Mobile Payments
Manuel added that while the United States is not taking action with regards to creating a regulatory framework for payments technology solutions, China is gaining traction both in terms of sophistication and scale when it comes to mobile payments solutions which could make enforcing sanctions much harder going forward if they gain worldwide adoption rates as anticipated by Manuel herself during her discussion with Brian Armstrong at Twitter Spaces session held on April 21st 2023.
Enforcing Sanctions With Traditional Banks And Blockchains
The United States enforces sanctions through Office of Foreign Assets Control (OFAC) of Treasury Department which has announced several actions against Russian nationals and groups related to their involvement in war on Ukraine including crypto wallets sanctioning activity from OFAC itself as well as other US governmental agencies such as SEC (Securities & Exchange Commission). According Anja Manuel these restrictions generally worked “in a world of traditional banks” and “responsible” blockchain firms but not when there were fintech solutions available for individuals trying to bypass those restrictions like using Chinese payment services instead for example..
Singapore UK & EU Taking Action For Compliance With Global Sanctions Regulations
According former Department of State official Anja Manuel other countries are getting ready with respective frameworks ensuring compliance with global sanctions regulations while US seems to be still lagging behind mostly relying only enforcement actions from SEC instead actually creating any kind effective framework for regulation here at home according Ms Manuel during her conversation with Coinbase CEO Brian Armstrong at Twitter Spaces session held last month April 2021th 2023rd day..
Conclusion
If United States fails eventually maintain its leadership role when comes financial innovation payment services then threat exists US may not capable enforcing its own imposed economic embargos anymore due lack clear regulatory framework here country allowing others take advantage this situation potentially undermining US stance worldwide stage especially if Chinese payment technologies gain widespread acceptance globally .