Here’s Why Trump Threatening Iraq of Losing Their Oil Reserves is Bullish for Bitcoin

  • The US killed top Iranian general in Iraq, Iraq wants to remove US troops from the country, US warns of more sanctions and holds their money hostage
  • The weaponization of fiat currencies and central banks would push people to start adopting Bitcoin

Iraq could lose access to its critical government bank account if they kick out American forces, warns Trump administration according to Iraqi officials. The reports came after US airstrike killed a top Iranian general, Qassem Soleimani at Baghdad International Airport.

The Iraqi parliament than on Sunday voted to urge Prime Minister Adel Abdul-Mahdi to remove about 5,300 US troops.

In response, President Trump has threatened to place economic sanctions on Iraq which would also extend to Iran. He could also end waivers that allow Iraq to buy Iranian gas to fuel its generators that supply the country's most of the power.

The White House is putting a lot of pressure on the prime minister over addressing US troops without enduring financial and economic loss.

However, Mahdi argues, they can only avoid conflict in Iraq by forcing out American troops. He was warned about the central bank account in a call on Wednesday, an Iraqi official told the Wall Street Journal.

A Jolt to Iraq’s Shaky Economy

The State Department warned that the US could shut down Iraq’s access to the country's central bank account, where its international oil sales revenue is kept, at the Federal Reserve Bank of New York.

Such a move could create a cash crunch in Iraq’s financial system and jolt its already shaky economy, the officials said.

Like other countries, Iraq maintains its government accounts at the New York Fed. According to the Central Bank of Iraq's most recent financial statement, the Fed held about $3 billion in overnight deposits at the end of 2018.

Restricting the access to dollars could cause a fall in the value of Iraq’s currency dinar, as it did in 2015. This can then trigger a run for dollars in Iraq in an attempt to secure hard cash by people, companies, and banks and cause broader economic woes.

Pushing People to Adopt Bitcoin

Crypto commentators believe this to be a positive thing for Bitcoin. Gabor Gurbacs, digital asset strategist at VanEck said

“The weaponization of fiat currencies, payment railways and central banks continue during conflicts and everyday life. It’s only matter of time people start adopting independent, apolitical, non-sovereign monies and payment railways, such as Bitcoin.”

“Not your keys, not your oil revenue,” says Samson Mow, CSO of Blockstream, adding, “Bullish news for Bitcoin. Gold just leads to more of the same problem. Remember the Venezuelan gold stuck in the Bank of England?”

Last year, US lobbied UK officials to deny Nicolas Maduro’s request to withdraw $1.2 billion worth of gold out of the Bank of England.

In the face of hyperinflation, economic and political crisis, Venezuela has taken to cryptocurrencies. Not only Maduro launched Petro but also has Bitcoin stash as US sanctions limit access to dollars. It is possible that Iraq resorts to Bitcoin and cryptocurrencies as well.

Read Also: Bitcoin’s First Successful Beta Test Of Being A Risk-off And Safe Haven Asset

Bitcoin (BTC) Live Price

1 BTC/USD =$10,690.6274 change ~ 0.66%

Coin Market Cap

$197.67 Billion

24 Hour Volume

$111.32 Billion

24 Hour VWAP

$10.68 K

24 Hour Change

$70.0633

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,482FansLike
2,795FollowersFollow
4,266FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Investors With Low Financial Literacy Are Twice As Likely to Own Crypto vs Market Gurus: Bank of Canada Report

A new study released by the Bank of Canada has revealed that folks with lower financial literacy are more likely to own Bitcoin than...

Love it or Hate it, UNI Token Stands to Benefit from Uniswap’s Evolution

After releasing the UNI token as part of Uniswap V3, the first update for Uniswap V3 has been made on Github. It might say...

Israeli Draft Bill Proposes Bitcoin be Defined as Currency to Cut Down the Hefty Capital Gain Tax

Four members of the Knesset, Israel’s legislative body, from the Yisrael Beiteinu faction, the secular nationalist political party, have submitted a private member’s bill...

TRON Partners With BitGo To Mint New Wrapped Bitcoin And Ethereum Tokens On Its Blockchain

TRON launches wrapped Bitcoin and Ethereum on its blockchain. The blockchain aims at taking over the raging DeFi market. Tron announced a partnership with...

More Urgent than Ever – Ethereum Layer 2 Solution Goes in its First Phase of Testnet Launch

Ethereum layer 2 solution Optimism is welcoming the first phase of the Optimistic Ethereum Testnet. This development has become a necessity of the market thanks...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today