Russia is preparing to avoid the negative impact of sanctions through crypto. Experts revealed that the country is ready to cooperate with anyone worldwide. These entities will then use the crypto alternative of bank transfers. The war between Russia and Ukraine continues; it seems that crypto can be a valuable tool for Russia to bypass sanctions. On February 24, Vladimir Putin ordered a military operation in eastern Ukraine.
The authorization indicates the cessation of NATO’s eastward expansion at the request of Russia to start a war in Europe. Because sanctions are one of the most potent ways to influence other countries because of their behavior, the United States decided to follow this path with Russia. In addition to the financial event that the U.S. was impressed with earlier in the week, President Joe Biden said Russia should expect additional sanctions.
On February 22, the Biden administration responded to Russia’s conflict with Ukraine by imposing new sanctions. POTUS aimed to impose sanctions on Russia to ban access to foreign capital. In addition, the Central Bank of Ukraine banned the issuance of electric money after the Russian invasion. The National Bank of Ukraine also issued a termination of the foreign exchange market. However, Russia is preparing to avoid the negative impact of sanctions, and this will most likely be the cryptocurrency.
Crypto Industry and Russia
It is worth noting that in 2014, the United States imposed certain sanctions on Russia. At the time, the U.S. banned its citizens from doing business with Russian banks after invading Crimea. The U.S. has also stopped Americans from doing business with oil and gas developers and other companies. As a result, economists estimate that Western sanctions cost Russia $50 billion annually.
The U.S. government used sanctions as a diplomatic tool. The U.S. dollar is a global currency; it serves as the world reserve tender. Russia should only explore trade routes without using the U.S. dollar. In addition, experts have revealed that the country has numerous tools related to cryptos to evade sanctions.
Russia is one of the countries diligently working on developing the CBDC. The Russian government hopes that its digital ruble will be acceptable when traded by other countries without first converting it into dollars. Cryptocurrency transactions are recorded in blockchains; hence, Russia has developed new tools to cover the origins of such transactions. This new tool will allow foreign businesses to trade privately with Russia.
COMMENTS