Alternative Payment Systems and the National Security Impacts of Their Growth

Chairwoman of the House Committee on Financial Services, delivered the following statement at a Subcommittee on National Security, International Development, and Monetary Policy hearing entitled, “Under the Radar: Alternative Payment Systems and the National Security Impacts of Their Growth.”

Thank you very much, Chairman Himes, for convening this hearing on the current and future national security challenges related to the growth of alternative payment systems. These systems can drive inclusion and offer convenience, but because they are generally outside of the western financial system, they also offer opportunities for sanctions evasion and other financial crime.

Further, they rival U.S. dollar-led trade and payments systems, potentially undermining the strength of the dollar and our ability to leverage tools like economic and trade sanctions. So, I look forward to hearing from today’s witnesses on what Congress needs to consider regarding this growing concern.