The US government is reportedly threatening to cut off access to Iraq’s central bank account held at the Federal Reserve Bank of New York. This is an unfortunate move that could further destabilize Iraq’s economy.

According to the report, the US issued the warning last week, in an attempt to punish Iraq for booting American troops from the region. The threat follows heightened tensions between the US and Iran after the killing of top Iranian general by the US.

The death of the Iranian general, Qassem Soliemani, trigged a counter attack by Iran on two bases housing US troops. This ignited fears of increasing military action and war.

However, the Trump administration seemed to pull back, expressing the desire for peace in the Middle East. Instead of military action, the US delivered the message by hitting Iran’s economy with severe new sanctions on its multi-billion-dollar metal industry.

The crypto community is weighing in on the impact of the US strategy to pressure Iraq into maintaining the status quo of housing the American troops. The Americans are doing this by commandeering Iraq’s money supply.

Gabor Gurbacs, a digital asset strategist at VanEck investment management firm says that, the weaponization of fiat currencies, payment railways and central banks persists during conflicts and everyday life. He added that, is about time people started adopting independent, apolitical, non-sovereign monies and payment railways, such as Bitcoin.

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. https://t.co/M9vNfL1mNl — Gabor Gurbacs (@gaborgurbacs) January 12, 2020

Popular YouTuber, The Crypto Lark, also claimed that this blatant exaltation is why he believes countries will move to Bitcoin.

This kind of blatant extortion is why countries will move to #bitcoin – https://t.co/Iri0v0lkYP — The Crypto Lark (@TheCryptoLark) January 12, 2020

A crypto analyst known as PlanB, also tweeted that governments are weaponizing money, hence degrading it to function as money. He therefore urged the community to protect themselves with Bitcoin.

Governments are weaponizing money, thereby degrading it to function as money. Today Iran, tomorrow they cut you off. Protect yourself with #bitcoinhttps://t.co/TZWJqJMoK3 — PlanB (@100trillionUSD) January 11, 2020

The Iraq Prime Minister, Adel Abdul-Mahdi, argues that expelling the roughly 5,300 American troops is the only way to prevent the conflict from diffusing into Iraq. However, according to the report, Trump promptly issued the warning to freeze the central bank account through a phone call.