Topic: Cryptocurrency will not save Russia from sanctions - page 4. (Read 1152 times)

I really don't think that Russia is fine and even the Elites (Russian oligarch) and even Putin aren't really fine with all the sanctions that are coming down on the country. If Russia was fine do you think that the so-called rumor will happen? Estimation is that the first five days of the war may have cost Russia as much as $7 billion in direct military costs and with all the sanctions, how long will this type of spending hold?

You feel like it's not going through hyperinflation yet? It went from 8.8 to 9.5 in a month which is crazy fast. If it stays that way they're going to be at 10 in April and then it's going to accelerate even more.

The loss of value of the ruble is tremendous. It's worth less than a cent right now and it was worth more even when the Soviet Union was collapsing, so imagine that.
They are not converting to crypto and you can see that by falling markets. They said in the news that they're buying jewelry and watches. Good luck selling that Rolex for food and fuel when hard times come.

I may have a contrary view on that, the success of Bitcoin may not depend on the failure of the fiat currency but the mainstream adoption and scalability growth of the Bitcoin network, bitcoin may not replace fiat as many people are thinking but would provide a better alternative to fiat and giving the people the chance to be in control of the finances. On the other hand, Russia will not rely on Bitcoin to escape financial sanctions they will still have another alternative to get their way a system around that is not decentralized such as Bitcoin

When their currency is going to hyperinflation, what do you think people would do? Of course, they'll use crypto save their money from inflation, you know that sanctions will result to inflation but bitcoin cannot be affected by that since it's not tied up with Russia. Smart people will certainly covert into crypto and these times would also help crypto to regain its bullish trend due to the high demand.

Days back to the war the bill for the legalizing of bitcoin was taken into the parliament discussion. Even though legality is positive, it can't make an immediate change in the market. If people have got time there is possible chances of massive adoption and people holding good volume of cryptocurrencies. Now people are willing to make an investment, but they weren't able to do it. Because, the entire banking system is shut and it is difficult to transfer fiat and receive bitcoin.

as far as I know, Russia has not yet adopted the necessary laws to allow cryptocurrency to move freely, but as a circumvention of sanctions, cryptocurrency could help, but judging by the news they do not have it in the first place and I think the cryptocurrency will be in limbo.

It never was supposed to. Bitcoin isn't accepted on the global market to the degree required that a country could dump a large amount in order to circumvent sanctions. To put this into context, Russia's National Wealth Fund dumped over a 100 billion dollars from their reserves of USD to swap it out with assets that would be more immune to U.S. sanctions (currency like Yuan). It wouldn't be possible at this stage for Russia to try and take USD reserves and convert them into Bitcoin, market isn't large enough.

Sanctions do accelerate Bitcoin adoption, though. Any country that chooses to do business with the U.S. understands that any holdings they have can be frozen depending on how the U.S. feels on that particular day. IMO sanctions are overused as a political tool.

the russian government don't like bitcoin at least that's what i understand and I doubt a lot that the russian government would let its citizens use bitcoin freely just because the country is suffering sanctions, russian regime is a regime of proud politicians and dictators, the kind of people who have in their heads that everything they do is for the good of the country, they think they are patriots and that they should avoid using things that are not made in Russia. with that kind of thinking even if they were starving the government would not allow massive use of bitcoin in the country

BTC will probably not be useful for large-scale evasion of sanctions where a sanctioned person wants to buy million-dollar mansions or whatever. Unless the transaction is purely virtual (like a crypto-to-crypto trade), such a large transaction will be noticed at the physical-world/fiat end of the transaction and investigated. Mixers won't help if authorities are looking right at your stuff in the physical world. Maybe the sanctioned individuals will find crypto useful to do small things like buy access to Netflix, but nothing major.

It is important to note, however, that BTC can be used by ordinary Russians to legally* get around the serious issues created by the sanctions. Currently, ordinary Russians will find it almost impossible to send or receive fiat payments internationally because the Russian banks have been sanctioned, but since ordinary Russians are not themselves sanctioned, they can legally* send/receive BTC internationally. If a parallel BTC economy develops in Russia, that'd be great for Bitcoin, for Russians (because they'll be able to escape some of the economic crush of sanctions), and for the world (because it'll give the Russian state less control over its people, making an uprising more possible).

Note that the regions of Crimea, Luhansk, and Donetsk are ~completely embargoed by US sanctions, so even ordinary people in those areas are sanctioned.* And there are other complicated details of the sanctions.

* As far as I can tell. I am not a lawyer, and this is not legal advice.

Well there is no hidden fat over what you said, i have been thinking about the possibility of them to be restricted entirely. i also noticed Binance and coinbase refuses placed a sanction to Russian users, meaning there is every assurance that they receive donation from Cryptocurrencies and convert it.

Source https://www.reuters.com/technology/coinbase-not-banning-russians-using-platform-ceo-says-2022-03-04/

What is this claim based on? Maybe people in Russia are a little more involved in criminal activities because their whole country is structured as one big criminal organization, from the great leader to the lowest official. What about hackers from the US, Iran, North Korea or Africa in general?
 

If you look at what Russia has been doing in recent years and how it is preparing for this war, then it is clear that they have certainly secured themselves in the event of such sanctions - now it is only a question of how much they are willing to invest from all this to achieve their goals. Crypto transactions (if there are any) are not something they should hide, especially if they do business with China or Iran that are on their side.

According to some people's analysis, it could be several years before all these sanctions start to affect Russia more seriously.

The success of Bitcoin only depends on the failure of fiat currency, and the Russian-Ukrainian crisis has accelerated the process of this failure. I really witnessed the centralization collapse of safe assets this time, and the money of smart people will speed up. Bitcoin Enter the big bull market.

One side I looks agree with many country banned Russia economic payment and right now domestic money of Russia value drop, looks advantage for Russia will legal bitcoin or altcoin as kind of payment currency because not any association or Europe country will banned Russia and give economic impact, because when Russia legal using bitcoin or altcoin as currency payment I think just possible to see bitcoin price about $60,000 again and looks easy how to make bitcoin have many investor if Russia try to legal as currency payment.

Bitcoin tumbler got it's flaws and they are ways the law enforcement agency can trace the flow of transaction if they know the address of the flagged transaction, they can detect who received the bitcoin depending on the amount that the receiver got. I think Russia is a place of technology and they must have thought about this all round and may have another way of escaping the multiple financial restrictions that awaits them now and in the future.

I hope Bitcoin helps those in Russia who are actually trying to do anything about the war or are fleeing the country until it becomes a very different state. I'm glad if it's true that big transactions will be flagged and checked to ensure they don't go to the Russian government, but I wonder if this is something that can really happen. Can't Russia use mixers, for example? Fake IDs for KYCs? It is the government we're talking about, so I guess we'll soon see how pseudonymity truly works and whether preventing terrorists from using Bitcoin to conduct large-scale war crimes is possible. I hope it is.

I quiet agree with you on this with Bitcoin Russia can easily fine an alternative to their already fallen currency, Bitcoin can best serve as an alternative, and at that if Russia can make use of Bitcoin services and having to find a balanced ground to get through the present economic situation in that country. With Bitcoin, Russia has a better alternative and can easily pass the financial restrictions but that is possible only they abide by the decentralized blockchain. Russia is a highly developed country that has many alternatives to sustain its economy from outside influence and the technical knowledge is there also.

The other countries are looking at their own deals first before taking action. If I were India now I would think like this, if the conflict escalates and Russia cuts the gas and oil to Europe it will need to sell it somewhere else so if I'm the only one left, don't I get a discount for it?
How are the negotiations going to be:
- Oh you are my brother I will pay you the same price for our friendship and love!
- Hey b1***, you want 10$ for a barrel of oil? Take it or go fy!

A lot of those countries and a lot of businesses know that they can profit from it, just like hyenas they are circling a carcass, a lot of them cheer as they see they have no adversary for the Russian market anymore and they can now sell at twice the price the crap nobody wanted to buy then.
Just like before the USSR fall, when we were exporting all that junk to South America and Africa, they didn't have a choice but to buy our garbage as the western world was not selling them anything.


Yeah, like the internet over which you post, or the computer from which you post. Oh, and the AK they've copied from the StG 44.

You know that Russia has some of the best hackers and developers in the world... right?

Do you think they will simply transfer bitcoins via the Blockchain and not through several Mixers and other services that are owned by them? These services care less about KYC requirements and once it has gone through these mixer services or any of these other services, it is basically untraceable.

You are not dealing with a 3rd world country here.... they are VERY good with all things digital and they will push it through their friends in other countries. (China)  

Russia is not a small power like Iraq or Afghanistan which were sanctioned tightly before usa invasion. Rather Russia has good support (or neutral reaction) from countries like China, India and UAE. I don't think Russia government is relying solely on bitcoin to curb the financial crisis if came as a result of sanctions.
But I do agree btc is a heaven for people living in war hit regions like Ukraine. As long as people of these countries can keep there seed or keys intact nothing can steal there money.

Crypto may not save Russia from sanctions, but it can save people in Russia, Ukraine, or Taiwan, or places anywhere near those places from losing money.  You can leave anywhere with your bitcoin.  Trying leaving, say, Hong Kong with a few ounces of gold.  Think about the rules for gold in India too. 

So I'd say crypto may or may not help the governments in these places, but it can definitely help people who are paying attention.  Of course this goes for everyone around the world.  A large majority of politicians are power-hungry crooks who are willing to sacrifice their people and liberty for money.