Can crypto help Russia mitigate sanctions?

NeuroticFish

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Quote from: Planegoose on March 09, 2022, 06:57:25 AM

As you know, the entirety of the Western world has been hitting Russia with an increasing number of sanctions. SWIFT, VISA, MasterCard, and so on. But, could crypto be the tool that helps Russia mitigate the effects of these sanctions?

I don't think so.

1. Most of the Russians cannot use the banks/cards much and the rubles are getting worthless: not much of ways nor reasons for selling them bitcoin (why would anybody accept rubles for bitcoin?!)
2. Russian whales have anyway a lot of money stashed outside Russia, probably in EUR, USD, CNY, stocks and so on, probably not (or no longer) under their own names. They can easily buy/sell bitcoin under others' names if they want to.
3. Many countries still want to buy oil and gas from Russia, no matter what. So, in a way or another, the money still flows.

As I said in another place, this "crypto helps Russia against sanctions" is imho an over-hyped unrealistic story.

Taskford

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Quote from: Planegoose on March 09, 2022, 06:57:25 AM

As you know, the entirety of the Western world has been hitting Russia with an increasing number of sanctions. SWIFT, VISA, MasterCard, and so on. But, could crypto be the tool that helps Russia mitigate the effects of these sanctions?

They could use crypto if they want to escape those sanctions to mitigate the sanctions around the world but the question is how long they can use this option as government can also interfer this if they discover that russian government use this as their alternative. Maybe their best option for now is gold since no one can bother them to use this as gold can be use or exchange everywhere.

cryptoaddictchie

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Quote from: tranthidung on March 09, 2022, 07:04:04 AM

Their choices might be reduced more if governments tighten regulations on DEX.

Probably this has been done already by Russia. We can assume that they are started injecting their money into crypto like bitcoin and major alts to some dex, since they can really dont have much choice except with China friendly affiliation. I assumed China allowing Russia to use or trade their Russian ruble with considerable rate to Chinese Yuan since they are allies.

TheNineClub

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I think that some experts have come out saying that crypto wouldn't have such a huge impact on overall sanctions reduction. What it might do is help the average person get by through those sanctions a little easier. As for any widescale crypto operations, I think it was said (don't quote me on this, this is just something I heard) that if Russia would go with crypto they would, in the best-case scenario able to come up with around 400mil dollars per day, and the war efforts are costing them billions by day. And also Coinbase has banned 25.000 wallets related to Russia so that would definitely make things harder. I mean, at the end of the day, they would want to convert that into FIAT, and that would again make things really dificult.

tranthidung

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Only on decentralized exchanges which have anonymous owners and core team members. If a decentralized exchange which is operated by a doxed team, it is very easily for governments to find that team, enforce them to obey law regulations and bind with current sanctions of a nation against another.

Most of trading volume in crypto still belongs to centralized exchanges so if Russia try to use cryptocurrency as one of their limited ways to mitigate sanctions, they can do it. With some disadvantage related to trading volume as said. Their choices might be reduced more if governments tighten regulations on DEX.

Planegoose

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As you know, the entirety of the Western world has been hitting Russia with an increasing number of sanctions. SWIFT, VISA, MasterCard, and so on. But, could crypto be the tool that helps Russia mitigate the effects of these sanctions?

Topic: Can crypto help Russia mitigate sanctions? (Read 113 times)