In the era of sanctions, the survival rules of resource-rich countries are being rewritten on the blockchain.

Venezuela's operations best illustrate the point. After the route of exchanging oil for USD was blocked, they changed course — directly exchanging oil for gold, then cashing out through trade reshuffling via Turkey and the UAE. This combination of tactics has opened a crack in traditional financial sanctions. But a more aggressive step was the launch of the "Oil Coin," using crude oil as the pegged asset, attempting to rebuild payment channels on the blockchain. The U.S. response was straightforward: freezing on-chain addresses and secondary sanctions on third-party traders.

Interestingly, while governments suppress private crypto trading, they themselves are using stablecoins to purchase supplies. Behind this contradiction reflects a reality — cryptocurrencies indeed hold special appeal for resource-strapped nations.

Similar stories are playing out worldwide. North Korean hackers launder coins for military procurement, Afghanistan uses mineral revenues to pay wages in stablecoins, and fringe economies are exploring this path. The latest "brainstorm" is using oil field revenue rights as NFTs for collateral, bypassing traditional banking systems to raise funds directly. From this perspective, it’s not just an economic battle but also a practical exercise of encryption technology in geopolitical conflicts.

But the other side of the issue is equally clear. Technology can redesign payment processes, but it cannot change physical realities. The reason why binding Russian natural gas to the ruble works is because Europe has no other choice; no matter how high Venezuela’s oil production, shipping routes are still blocked. In the long run, the true winners may be those who control resources, maintain neutrality, and possess on-chain infrastructure — the UAE is working hard in this direction.

Returning to the fundamental question: what will be the ultimate outcome when sovereign states use cryptocurrencies to break sanctions?

A. Blockchain truly decentralizes, becoming a new tool to break hegemony
B. Physical constraints and geopolitical pressures will ultimately overpower technological innovation
C. The gray area will persist long-term, and on-chain versus real-world conflicts will continue

Of course, ordinary investors need to be aware: the risks involved in such cross-border crypto transactions are extremely high, with assets potentially wiped out and legal issues numerous. Observing trends is one thing; participating is another.