Dodging sanctions in the shadow banks

Iran Amends Law to Allow Imports to Be Funded With Cryptocurrency

Requires a fair market in exchanging bitcoin for rial. Right now it is mostly local OTC bitcoin trading. How does Iran deal with Swift ledgers?

WASHINGTON – Today, the Secretary of the Treasury, in consultation with the Secretary of State, identified the financial sector of the Iranian economy pursuant to section 1(a)(I) of Executive Order (E.O.) 13902, which authorizes Treasury to sanction any Iranian financial institution. Subsequently, the Office of Foreign Assets Control (OFAC) sanctioned eighteen major Iranian banks. As part of this action, OFAC sanctioned sixteen Iranian banks for operating in Iran’s financial sector and one bank for being owned or controlled by a sanctioned Iranian bank. Additionally, today’s action includes the designation of an Iranian military-affiliated bank under Treasury’s counter-proliferation authority. 

So Iran is having increased difficulty in getting Swift access. what about gold?

KUALA LUMPUR (Reuters) - Iran, Malaysia, Turkey and Qatar are considering trading among themselves in gold and through a barter system as a hedge against any future economic sanctions on them, Malaysian Prime Minister Mahathir Mohamad said on Saturday.

Gold is its own ledger. 

Iran's option is to hold secret Swift accounts, in under other central banks, from which it can deposit crypto sales.  That would be just about any central bank in the tax havens.  Iranian merchants become standard tax dodgers, ultimately supported in the shadow system.  Sanctions are treated as  taxes to be dodged. And  trade with China or Russia are exempt from sanctions.

The plot thickens:

Says the big bond manager:

So perhaps in hopes of attracting much needed attention to just how profound the monetary overhaul that is quietly taking place behind the scenes, Doubleline's resident digital currency expert, Bill Campbell has penned a follow up note to his original report, in which he explains in stark and vivid clarity what is about to happen. In a nutshell, "the world’s central banks and the Bank of International Settlements (BIS) envision a network of multiple cross-border payment systems featuring direct bilateral exchanges in the world’s different currencies. Such a regime would discard the decades-long mediation through the world’s reserve currency, the U.S. dollar." In short, central banks are preparing to launch cross-border payment systems which represent a new global order which poses a "major threat to the dollar and its status as the world’s reserve currency."

Losing reserve status forces the Fed to compete with crypto and give up on being the nations tax collector.  This is basically good, but it does come with a devaluation.