4 ms·

Can you expand your reasoning a bit further? I believe what you are implying that the issuer of the currency has some control over how the currency is exchanged

• emodendroket 8y ago
  The US can, and does, use its control of the US payment system to punish anyone who deals with states it wants to sanction, such as Iran. https://www.washingtonpost.com/world/national-security/iran-plans-to-use-other-currencies-to-get-around-us-sanctions/2018/09/29/230df8e4-d4a3-4429-94be-4dbb90ece08e_story.html https://www.washingtonpost.com/world/national-security/iran-... > The power of U.S. sanctions lies in the use of the U.S. dollar in most international transactions. A foreign company that sends its proceeds from trade with Iran through an international bank would likely face sanctions because part of it would be conducted in dollars. An international company with an American employee who has something to do with a transaction, no matter how inconsequential, could also run afoul of U.S. sanctions. > Only a handful of countries agree with the U.S. decision to abandon the nuclear deal. The European Union said Monday that its member countries would establish a system to allow oil companies and private businesses to keep trading with Iran. But many international corporations have already stopped doing business with Iran because so much international business is conducted partially in U.S. dollars.
• scott_s 8y ago
  In support of emodendroket, in order to be a third party wanting to exchange the currency, they must obtain it. The issuer can make that significantly harder through sanctions.