Topic: Russia can evade sanction through cryptocurrencies - page 6. (Read 1884 times)

Ukrainian Vice Prime Minister Mykhailo Fedorov would like to freeze all of Russia completely    Russia can use mining. I think it's a matter of time. Russia may use crypto exchanges that do not comply with sanctions or do not have control systems. This is one of the well-known options for circumventing sanctions.

It may be a "fire-fighting" option for Russia but will not avoid additional western goals, Bitriver is a prime example with sanctions goals, if Russia can legalize bitcoin by  In a reasonable manner
- they are completely justified to maintain the economy with minimal risk.  Since they have a potential crypto market with an estimated 124 billion USD
- they have the 3rd largest bitcoin mining center in the world.

 With these evidences, exposure to legalization of bitcoin offers a lot of potential for them in my opinion.

This is the right step because any country will not be able to stop cryptocurrencies, if Russia uses cryptocurrencies for transactions, it will certainly make the transaction volume increase significantly, for example, Russian gas transactions can reach billions of dollars for a single transaction.

Cryptocurrencies are decentralized, so it's easy enough to "evade" sanctions by conducting crypto-to-crypto payments from one country to another. The real challenge would be converting crypto to Fiat, as all on/off ramps will be shut down for good because of the sanctions. Only in-person trades or P2P platforms will allow Russia to exchange crypto for Ruble and vice versa. Because of crypto's decentralized nature, some countries are beginning to tighten regulations in order to prevent Russia from evading sanctions as much as possible (even though they won't succeed in the long run).

What can truly stop crypto is if the whole Internet is shut down for good. But that is almost impossible to achieve. No one knows what's in Putin's mind right now, so we can only hope for the best. Just my thoughts

Tell me, no offense only, you don’t understand how sanctions work and what is their task?
Let me ask one more question - why, for example, Russia will not be saved from sanctions by cowrie shells, or the fruits of a fig tree? Well, the countries that are under sanctions, agree tomorrow and decide that among them, now the most important currency will be the cowrie shell, and that's all, the sanctions are bypassed? So ? Silly, I agree.
And now the question is - please describe the chain of steps to circumvent sanctions, using cryptocurrency, for example ... well, let there be a package of sanctions prohibiting the supply to Russia from the USA, Canada, Britain and Australia of industrial equipment for drilling geological exploration of wells, as well as equipment for oil production? And once you start thinking about the chain, you will realize that cowrie shells are not a bad option

Why do I always see the same information that everything is bad in Russia, sanctions will destroy it and stuff like that? Doesn't anyone think that everything can be completely different from what it seems at first glance? Well, probably not, because propaganda is such a thing, however, as far as cryptocurrencies are concerned, why not? What will prevent Russia and, by the way, other countries that are under sanctions from using cryptocurrencies for their own convenience? Well, except that all cryptocurrencies were created by the West, for example, the United States, which means that everything they tell us about the reliability of cryptocurrencies is complete nonsense. But if, nevertheless, this is not the case and cryptocurrencies were indeed created in order to have an alternative for settlements at such moments, then it turns out that cryptocurrencies help Russia to have an income and make the payments it needs. Based on this, it turns out that cryptocurrencies will be able to help Russia survive in this difficult time.

I think that the only way that they can restrict any country from BTC or any technology that has to do with BTC is that they do not have electricity or internet service, it is the only way for it not to enter, otherwise it is with BTC or not, they will get ahead with the restrictions, sometimes I don't know why so much indolence towards RUSSIA when there are also people who suffer who don't like war, in these cases some may see BTC as bad because money arrives there without problems, but it is necessary to highlight which can also increase demand and in turn over time will generate a high value in fiat, translating into a high price value.

Perhaps you are referring to the amendments that have been made in Russia lately as a movement in Russia to legalize bitcoins? According to them, it will be possible for Russian citizens to have cryptocurrency on centralized exchanges, which will be completely controlled by the government, or on their wallets, if citizens provide the secret keys to them to the relevant supervisory authorities. Having cryptocurrency and not reporting it to the authorized bodies will be considered a crime and punishable by large prison terms. But perhaps for Putin's slaves, this is still a fairly high degree of freedom. Therefore, the people in Russia actively support the actions of their king. Well, they brought him to power, let them rejoice now.

Understand one simple thought - if the Russian economy were self-sufficient, perhaps the accumulation of income in cryptocurrency could support the domestic economy. But the problem is that the Russian economy is globally dependent on Western goods and technologies!!! As practice has shown, the Russian economy essentially collapsed just a month after the first sanctions, and not the most severe! That is, in order for the economy to work, Russia needs to buy technology and goods from the West. And in the West there are legal means of payment - the dollar, the euro, the yen. But there is no cryptocurrency, rubles, and other under-currencies! Or these under-currencies, it will be necessary to somehow convert them into normal currencies

For now Russia still have lots of options even with these so called harshest sanctions from the west. They can utilize cryptocurrencies and economic giants like China, India and Brazil. I even believe that many of these western countries are just trying to show the world and the public that they are doing their best to destroy Russia's economy. Germany for example, wanted to block oil sanctions. North Korea, Iran and Turkey utilizing cryptocurrencies are also common and it won't be surprising if Russia is secretly doing massive transactions already.

Anonymous and decentralized cryptocurrencies shined even more when the Russian invasion of Ukraine occurred, now the discourse on the use of crypto for gas and oil transactions is increasingly massive, of course Russia sees a large market opportunity from crypto so that by legalizing crypto there will be no country blocking assets or finances because crypto is freedom.

If that really happens I think it's a great development especially in cryptocurrencies,
we all know that Russia is a big country so when Russia legalizes cryptocurrency and prepares everything for fiat replacement maybe it will trigger other big countries to do the same,
apart from that we need to take a closer look and follow the progress

It's a good step if Russia legalizes cryptocurrencies and accepts crypto for transactions with other countries, of course this will have a big impact for countries that want transactions with Russia to automatically legalize cryptocurrencies, and I'm sure Russia is currently making crypto prepared for transactions as a substitute fiat.

Crypto are not controlled by the US or Europe or any other country, Russia accepts cryptocurrencies under the siege of sanctions, this may have been in Putin's plan. Like they accept bitcoin payment for friendly countries but still I am wondering if those countries accept bitcoin like Russia. Therefore, whether paying with bitcoin to import goods is really effective or not is still a question mark.

Cryptocurrencies are one of the most viable options for Russia to evade sanctions.  Russia can use the bitcoins to pay for imports of goods and services that it might otherwise find difficult to access due to restrictions from the US and Europe.

Exactly as you said. It's not just Russia that benefits, but crypto activists as a whole.
And I think the Russian president has also prepared for this possibility long ago. And through cryptocurrency blocking from various countries to Russia becomes less influential. Because Russia can still trade freely through cryptocurrencies because crypto is a market that is open to all. And hard to limit.

These things are temporary things though, it is not like changing the whole system of Europe or the whole economy. Do you really think that one or two year of horrible economy would disturb the whole of Europe? I mean look at 2008, we had Spain and Greece almost dying out, and Europe got together and fixed them all and allowed them to get better. This is why I have to say that it is not really a big deal for them to be in a horrible situation right now, all of the citizens will live a horrible few years at the worst case but then they could recover.

The difference between Europe and other nations is that if you have a horrible few years in Europe, it is easy to recover, but if you live horrible few years in another nation, there is a chance you could stay like that for a long time.

Russia's move to legalize bitcoin is an important thing, the cryptocurrencies community is growing and has now reached more than 500 million users globally, this is certainly an advantage for Russia if it is subject to sanctions by legalizing cryptocurrencies.

The economy is very changeable, now we are seeing the havoc that it is wreaking in Europe, there could be a great shortage of gas, as there is, then this will increase everything that has to do with energy matters, apparently if the war intensifies the The one that is experiencing the sanctions now with more force is Europe and now it has to try to find another supplier for oil, for gas, and I think it will be much more expensive than the one provided by Russia, now I think that Putin had considered this scenario and therefore That's why everything is happening that way.

Sanctions are not a complete game-changer when it comes to crypto adoption in Russia.

If your average Russian starts using crypto, this will devalue the ruble even more - that, in turn, would weaken Russia’s power. The Russian government will never allow their own currency to lose value, in exchange for non-government-specific one. Every time Russians exchange their rubles for Bitcoins, the Bitcoin price will grow, because the demand will affect the market, and the ruble will crash further.

In addition, the Russian government issued new laws that limit Russian citizens from sending, receiving, and transacting with any foreign currency. Russian citizens must convert 80% of the total sum into rubles in three days, or risk getting fined. So, even if you reside in Russia, and trade your cryptocurrencies into USD or EUR, you will need to switch it to rubles, therefore mass adoption ir practically impossible. Less than 0,3% of the total global net worth is currently in crypto. Let’s transfer this to Russia - even if 0,3% of Russians hold a lot of cryptocurrencies, that’s still a very small number. In circumstances like these, sudden and unexpected mass adoption within the country is simply impossible.

Crypto is just too small to make a real difference for them!

This video explains the situation pretty well:
https://youtu.be/2vVj6jAuBNE