Investigating the Role of Virtual Currencies in Neutralizing Sanctions: An Analysis of Experts' Views

Document Type : Original Article

Authors

1 Associate Professor, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

2 M.A., Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

3 Associate Professor, Department of Women and Family Studies, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

Abstract

In recent years, economic sanctions have emerged as a powerful tool for disrupting the economy of targeted countries. In response, the countries under sanction have sought effective strategies for mitigating the negative effects wrought by sanctions on their economies. The rapid surge of cryptocurrencies and digital currencies in recent years, coupled with their unique characteristics, has provided a possible solution for sanctioned nations to counteract banking and financial sanctions. The objective of the present paper is to examine the role of virtual currencies in neutralizing economic sanctions. Given the exploratory nature of the topic, a qualitative research methodology was employed, with semi-structured interviews conducted with 14 experts, researchers, and executives in the field of economics, all of whom have experience working both within and outside Iran. Thereafter, a thematic analysis was conducted to process the gathered data. The findings suggest that the issue at hand can be can be categorized under two main themes: "banking and financial sanctions" and "the use of virtual currencies in international transactions". Overall, the results indicate that virtual currencies can play an effective role in neutralizing sanctions; however, certain considerations must be taken into account when utilizing them.

Keywords

References

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Journal of Defense Economics and Sustainable Development
Volume 10, Issue 35
April 2025
Pages 135-161

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