Cryptocurrency: Will this alternative ease Russia’s economic pain?

With mandatory economic sanctions, Russia can use cryptocurrencies to get the economy back on track. And it worries politicians dissatisfied with Putin’s invasion of Ukraine. However, Jake Chervinsky of the Blockchain Association wants to reassure them that this option is not feasible on the scale required.

Cryptocurrencies are not a safe haven for Russia

“” Totally unfounded How Jake Chervisnky characterized some politicians’ concerns about the relief of potential cryptocurrencies by the Russian Treasury. The reason is that the volume of the crypto market is far from satisfying the economic abyss that Vladimir Putin’s country is currently experiencing. Moreover, the infrastructure that supports these assets locally is not large enough to support the needs of the entire country.

These political figures include Hillary Clinton, former US Secretary of State, and Christine Lagarde, current President of the European Central Bank.

I disprove this theory in three ways

Chelbinski gives three reasons to reassure them.

Reason # 1:

First, he mentioned the extension of sanctions on currencies other than the US dollar. In addition to this, there are bans on all forms of transactions between companies or US citizens and Russia.

So he said:

“” It doesn’t matter if they use dollars, gold, shells or bitcoins. »»

Reason # 2:

Countries like Russia have financial needs that go beyond the current capacity of the crypto market by law.For now, these are It’s too small, expensive and transparent, and can’t help the Russian economy. Moreover, if the Kremlin manages to raise a large amount of cash, the transaction cannot be hidden.

Reason # 3:

The country’s efforts to circumvent old sanctions have so far not been able to inspire us to build a meaningful crypto-infrastructure. And it is not yet in a position to finalize the relevant regulations.

He added to Jake Cervinsky that Russia itself has not developed a similar plan to mitigate the effects of sanctions. He added:

“” In reality, Putin has spent years protecting Russia from sanctions, and cryptocurrencies are not part of his plan. His strategies include diversifying Russia’s reserves into RMB and gold (not cryptocurrencies), shifting trade to Asia (not blockchain), and returning manufacturing to it. It was. »»

There is no doubt that Putin will have access to the cryptocurrency plunge

In the face of this situation, we advocate disagreements expressed by a particular personality.

Among them, I quote Roman Bieda, who is responsible for fraud investigation of the blockchain investigation platform Coinfirm. About Al Jazeera, he used cryptocurrencies to ” Avoid sanctions and hide wealth. »»

The cases in North Korea, Iran and Venezuela support his remarks.

Ari Redbord, Head of Legal and Government Affairs at TRM Labs, praised blockchain transparency as a deterrent to avoiding sanctions.

“” Russia cannot use cryptography to replace hundreds of billions of dollars that could potentially be detained or frozen. »»

Regarding Cointelegraph, Christine Lagarde said she is looking forward to the European Parliament’s adoption of a bill on the crypto asset market as soon as possible. The purpose of this initiative is to provide European authorities with a mechanism to ensure that: Cryptocurrency assets may actually be seized “.

Against the backdrop of the crisis in Russia and Ukraine, Mr Lagarde wants to speed up this legal maneuver to limit the maneuverability for Vladimir Putin to oppose the just-imposed sanctions.

Regarding Mrs. Clinton, through an interview with MSNBC, she urged Joe Biden to ban crypto-based commerce from Russia. Concerned about national security, the former Secretary of State commented:

“” The Treasury and Europeans need to carefully consider how the crypto market can be prevented from giving Russia an escape route. »»

Before presenting his disappointment in this way:

“” I was disappointed to see some (but not all) cryptocurrency exchanges refusing to close transactions with Russia due to certain libertarian philosophies. »»

Other politicians would not want a capable Russia. ” Escape financial pain (A term borrowed from Senator Elizabeth Warren). This explains Putin’s wrath and these repeated warnings from them to weaken the power of his army.

Source: Cointelegraph

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Mikaia Andria Mahazo Ali Manana

The blockchain and crypto revolution is underway!And, contrary to all hope, the day that affects the world’s most vulnerable economy, I say, had something to do with it.