After the invasion of Ukraine was registered, President Joe Biden announced a series of economic sanctions against the government of Vladimir Putin, which directly affect banks and state-owned companies, but Russia could use cryptocurrencies to evade US sanctions.
According to experts, the Putin government and Russian companies could evade these sanctions from the United States and the international community by using cryptocurrencies in financial operations, whose market is on the rise.
And it is that the same decentralization of cryptocurrencies such as bitcoin and ethereum allows governments and non-governmental entities to benefit from peer-to-peer transactions, regardless of whether they are disconnected from traditional banking services.
Russia-Ukraine conflict
This strategy can be used by Russia to avoid the economic sanctions imposed for the invasion of Ukraine, although President Putin calls it a “special military operation”.
The United States and other governments have announced a series of sanctions against Russia, including the United Kingdom has demanded that the international community remove Russia from the global payment network SWIFT (Society for Worldwide Interbank Financial Telecommunication) , but has had no echo.
Experts indicate that governments such as Iran and North Korea have resorted to cryptocurrencies to evade the sanctions that have been imposed on them.
Russia would use cryptocurrencies
“As with the traditional financial system, Russia can take advantage of cryptocurrencies to evade the sanctions that are being applied in response to their invasion of Ukraine”, Caroline Malcolm, Head of International Policy at the blockchain analysis firm Chainalysis, told the specialized site Decrypt.
Although he recognized that in the same way as in traditional markets, this strategy may have financial costs.
“As in the traditional financial system, the cryptocurrency ecosystem can put in place measures to identify the transactions of the identified sanctioned entities,” she specified.
“If two people or organizations want to do business with each other and they can’t do it through banks, they can do it with bitcoin,” said Mati Greenspan, CEO of the financial advisory firm Quantum Economics, according to what was published by The New York Post.
The expert commented that people can keep their wealth in cryptocurrencies, to keep their resources safe.
“If a wealthy person is concerned that their accounts may be frozen due to sanctions, you can simply keep your wealth in bitcoins to protect yourself from such actions, “said the specialist to the American newspaper.
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