Topic: Russia Sanctions Will Spur the Adoption of Crypto and Reduce USD Dominance - IMF (Read 401 times)

The truth is that I don't know, Russia is a very powerful and oil-producing country, only the ships that are idle I think without exaggeration if they manage to sell all the oil it would fall to almost 30USD per barrel because the Russians simply supplied how many countries they would like, and that is something that is taken into account in the USA and Europe, I do not think that they are going to continue to issue more sanctions, because those sanctions have disturbed the quality of life in Europe and the USA, so much so that they have had to go to speak of the Americans with Venezuela, a country that they did not want to know about absolutely nothing, and thanks to the need and desperation now it is happening.

This just means that overall and looking at the long-term, economic sanctions are not really working and not producing the kind of effects that big countries like USA, UK and others have been expecting...and they must be blind to not accept this fact. For as long as Putin can sell his own oil then no sanctions can harm them 100%. Sadly, many countries even including the USA could not live without the oil and gas and so they have no choice but to buy some supplies from Russia. To stop the way, all should stop buying any amount of Russian oil and all must be supporting Ukraine with ammunitions to combat the invaders.

On the dominance of the USA Dollar, it must be noted that it has been on the decline since many years ago and its enemies are marching on to strike USA on its Achilles hell...its economy and they are working to lessen the dependency of international commerce on the dollar. When majority of international transactions are not anymore done using the dollar then that can be the time when Americans can feel hyper-inflation and the big decline on its economic standing. China, Russia, Germany and even Iran would be coming on the global scene to fill the leadership gap.

although we see sanctions in the Russian Federation, but I am not sure that they will switch to cryptocurrency and adopt certain laws there, for example, I do not see any progress in this direction, maybe in the future it will be so, but most likely the Russian Federation will stimulate its state currency, not cryptocurrency.

On the night of April 13-14, due to the self-confidence of Russia's top military leadership, the Armed Forces of Ukraine won a major strategic victory at sea. Two Ukrainian-made missiles "Neptune" caused significant damage to the flagship of the Russian Black Sea Fleet - the nuclear-powered missile cruiser "Moskva". After that, the ammunition detonated on the cruiser itself and a big fire started. They tried to tow him to the occupied Sevastopol, but after a while he rolled over and drowned. Russia acknowledged the fact of the death of the cruiser, but hides the causes of the fire.

The Moskva cruiser was designed to protect the entire group of ships located off the coast of Ukraine from enemy missiles and had appropriate weapons for this, capable of firing up to 5,000 rounds per minute, but could not even protect itself. Prior to that, he fired rockets only at peaceful cities in Ukraine, and also had to ensure the large Russian offensive planned from day to day in southern Ukraine. According to information that Russia has not yet confirmed, of the 510 crew members of the cruiser, only 58 sailors were rescued. Almost the entire leadership, led by the captain, perished. Since the rest of the ships of the Russian fleet turned out to be practically defenseless from the air, and the Ukrainian "Neptunes" can reach the ports of the occupied Crimea, they hastily retreated to the south. The Ukrainian armed forces have offered the Russian fleet to leave the Black and Azov Seas while there is such an opportunity.

In Russia, there were only three ships of a similar class as the Moskva cruiser. But there is no need to wait for Russia's help in the Black Sea. The Bosphorus channel at the entrance to the Black Sea was closed by Turkey for all warships, you can only leave this sea, but not enter. Russia was defeated not only on land and in the air, but also at sea.

 By the way, not so long ago, the Armed Forces of Ukraine sank a large Russian landing ship called "Saratov" in the occupied port of Berdyansk. True, Ukraine then struck with a Tochka U missile, which was not intended for surface targets.

There is no denying the fact that the war and the sanctions have opened a new door for Russia which is also a world leader after Russia's central currency crashed against the dollar following the sanctions mass against them by the US and other countries.

This opens up the adoption of other currencies by Russian and their major cooperation goes to china since their trades are ordered to be executed using other currencies aside from the regular USD.

Indeed, the war between Russia and Ukraine has pushed crypto to new heights, surely other countries have seen the benefits of crypto in war or will use crypto to evade sanctions. But it will not be good news if cryptocurrencies weaken the strength of USD and EURO, US and EU will not sit idly by and let their currencies lose their dominant position.
They will have regulations that even embargo bitcoin and crypto, they will never be able to kill crypto but with the embargo from the US and the EU will have a huge impact on the development of crypto.

Bitcoin adoption is unlikely and Russia will go the way of China. It is now a major strategic partner for Russia, which has completely banned all cryptocurrencies and their mining. Russia needs to strengthen its national currency and adopting bitcoin will weaken it. Moreover, the Central Bank is categorically against cryptocurrencies.

I only wonder why people of Russia do not go out in protest,they have literally have been deprived from their 'freedom" to use any currency and can only use Rubles,can not send money abroad or not receive money from abroad.
Isn't this the kind of sanctions that should make normal Russian citizen to wake up in protest?The average Russian now has fallen down in his personal finances/economy quite a lot and I wonder why they do not react.Most probably the propaganda from Russian TV State media is brainwashing them with some success from the war in Ukraine,when in fact the so called "second strong army in the world" is nothing more than a bunch of murderers and rapist pigs.

Asides countries that broke out from Russia, Countries Like China, Iran and India will sure trade and affiliate with Russia since they've been supportive of them even in the USSR as of old.
Russia despite the sanctions has seen it's Rubble increase han the way it was even before the invasion, I think a lil bit higher than the USD.
The adoption of Bitcoin seems slow, and I think and considers going slow at times a good move.

Wasn't this the idea behind the attack on Pearl Harbor? To "stun" America crippling her badly so they would leave them alone during their pacific conquest?. That didn't end too well did it?

Prior to this invasion, Russia was moving towards Bitcoin ilegalization forcing their miners to sell everyrhing to their central bank. Has any of this changed? What ever happened to the Digital Ruble? (because CBDCs are in fashion it seems).

               Thanks for this, such good information. Now, looking at this, we can easily say that the tactics were dumb and the overconfident Russian military had suffered a massive consiquence due to their arrogance. The problem here is the execution of tactics. The tactician was to proud and did not consider all possibilities. This does not mean though that the overall plan was stupid. Just that the execution of some oarts of it was bad. In this case, military tactics.

Now even in Russia they admit that the organization of a military attack on Ukraine was not thought out enough. The calculation was simply to stun the Ukrainians with a massive attack of military equipment from three sides of the borders of Ukraine and immediately in eight directions. Already when the Russian troops got very bogged down and began to suffer defeat in manpower and equipment, they realized that they were greatly mistaken and even called the military tactics of the Armed Forces of Ukraine intellectual.

The Armed Forces of Ukraine did not get involved in frontal battles and, having let the enemy columns inside their territory, they began to hit the columns of armored vehicles from the sides in small mobile groups. The big mistake of the Russian command was that the advanced units were not followed by troops that would remain in the occupied territory, and there was also no provision of advanced units with fuel, ammunition, medical care and even food. They expected to capture almost the entire territory of Ukraine without much resistance in a few days and use everything captured. There was not even a common unified command of the offensive against Ukraine in Russia. The Armed Forces of Ukraine began to beat a few support columns and a week later the occupying army turned into a hungry army of marauders without any command.
They paid the price for this: about 20,000 killed, several times more wounded, more than 700 tanks, 1895 armored vehicles, 151 aircraft, 136 helicopters, 335 artillery systems, 108 multiple launch rocket systems, 1363 various vehicles were destroyed and captured. There are much more military losses in equipment than many armies of European countries now have.

Now the Russian army in Ukraine is demoralized, they do not understand what they are doing in Ukraine, they are shocked by the heavy losses, so the soldiers are looking for ways to get out of this hell and often inflict gunshot wounds on themselves just to stay alive.

               Still though, we cannot call the overall plan as stupid just yet regardless of the majority being misinformed or not. And being prepared for wars is already a given. What I focused on was the countermeasures that putin and the minds helping him have devised to ensure as much benefits as possible regardless of the losses they would suffer. The more fitting word would be immoral. But then again, I kay just he assuming these things. But until more of this uncovers, im believing this assumption.

The Russian rubles is losing value l with great intensity and the only way Putin could restore their falling economy is to ask other countries to pay in rubles so the value of their currency can go a little bit high. We know what the Russian government is planning. Putin may decides to regather his soldiers to prepare for another strike since their had been many sanctions on them.

Wouldn't you think EU and US won't do something about this? Since their effort of sanctions won't affect russia? Well, russia is used to it already.

I think if this really happen, these oldies in EU and US will take all the blame to bitcoin and cryptocurrencies, it might be something stupid to think but it's possible to change their regulations and even totally ban bitcoin and cryptocurrencies in their jurisdictions for these reasons. Idk, hope it won't happen.

It is guaranteed that there were people who helped him planned it, but I am not entirely sure if they "wanted" it. There is a difference between wanting to go to a war, and being prepared for a war, those are two different things. People in military would know that you need to be ready for war at any given moment, but you would prefer if there were no wars at all.

There are people dying all the time, soldiers that work under you that gets killed, no soldier, general or private, wouldn't want something like this. Putin may have asked them to do it, and they were forced to do it but I am sure that nobody in Russia would want Russian soldiers to die for this, they would prefer avoiding it if it's possible.

               On the contrary, I don't think the majority of the Russian government sees this move as stupid though. I mean, Putin alone didn't plan all these and obviously had several minds that helped him create such plans in starting a war, what countermeasures would be done on different scenarios and more. Though these actions I frown upon, because of being immoral anf unfair dor the Ukrainians, I still think there is more to this plan than we we are seeing right now and quite a bit early to call it stupid.

Which country defends its sovereignty?
Why are you lying ?
Russia is killing people in Ukraine!!!
Russia does NOT protect anything!
Russia brought pain, grief and death to a neighboring country!
I wish you to be in Mariupol together with your family, you are a soulless false propagandist!

The most stupid act on the part of Putin and his elite was to attack Ukraine in order to seize its territory and try to subordinate it to their interests. The second stupidity was to commit terror and genocide of the Ukrainian people, when the Russians saw that they were not met with flowers, but were given a worthy rebuff. The Kremlin decided to intimidate Ukrainians with the massacres of women and children, as well as the total destruction of cities and other settlements. But Ukraine has only rallied in the face of a common threat and is now beating the "second army of the world" in all directions.
The hitherto unprecedented sanctions were the result of a similar rallying of Europe and other states in the face of a common threat to world security from Russia. This was also not calculated in the Kremlin. In a year, Russia will become the poorest state and will be despised throughout the world.

               With Russia's experience in the years before the recent sanctions coupled with what they have seen in other cases where sanctions have also been imposed, I do not think Russia hasn't thought of a plan to counter these sanctions prior to their acts of war. That'd be a hell of a stupid move. Not to mention the emergence of crypto currency and it's hastening mass adoption, the Russian government really has dozens of way to go about the sanctions.

The United States and Great Britain did not unleash a war in Ukraine. The aggressor country is the Russian Federation. Your reasoning is interesting: Ukraine, neighboring Russia, has declared that it wants to join NATO, therefore a military attack on it, the destruction of its infrastructure, residential buildings, schools, hospitals, women and children, is justified, because NATO weapons will be placed on the territory of Ukraine.

Russia shares borders with Latvia, Lithuania and Estonia, which have long been members of NATO. For some reason, Russia had not previously reacted in this way, and NATO weapons on the borders of Russia did not cause such aggression. Obviously, this justification of war is wrong. And any attack on a neighboring country that clearly does not threaten Russia is still aggression and a violation of all international norms. Therefore, the civilized world has united against Russia and is helping Ukraine to defend its freedom and independence with weapons.

Europe is not yet paying for gas in rubles, but Putin insists that it is, otherwise gas supplies to such countries will be cut off. But the payment mechanism is not quite clear to me. Countries will still pay for gas supplies in dollars or euros, simply exchanging them into roubles at the central bank rate and then making the transaction in roubles. I don't know how this would negatively affect the dollar in particular. But in general I agree that the dominance of the dollar should fall in the current world situation.

To be fair US dollar dominance has been decreasing for a long time, if anything this conflict involving Russia only made it faster.

To be more fair cryptocurrencies apart from bitcoin have no use case and their adoption has only been limited to gamblers so it can't be counted as "adoption".

You forgot Europe that is paying for anything they import from Russia by Russian currency (Ruble). It started to be only energy imports but now it is everything

Today Bank of Japan have called G7 nations to adopt common cryptocurrency regulations. This plan has been initiated in response to the continued conflict between Russia and Ukraine, where the cryptocurrencies and applications used to overcome sanctions.


More the adoption taking place, more the plans being initiated by countries fearing that might disturb their economies. Though these countries are friendly to cryptocurrency, they never think of bitcoin as a common asset for transaction and was looking for an alternate.
G7 nations to adopt common cryptocurrency regulations

The IMF deputy managing director was right about the US dollar dominance to reduce but the Russia sanction just fuel it causes every fiat (not the US dollar alone) has been losing there dominance from the moment people see cryptocurrency as an alternative when fiat currency is loose value.

Yes, this will give cryptocurrency an advantage and will also come with disadvantages because some countries that support the US sanction may see cryptocurrency (Bitcoin) as a problem.

We knew something like this was coming, after all just as Europe is taking steps to be less dependent on Russian oil and several other materials they import from Russia, it was to be expected that Russia is taking steps as well to be less dependent of the financial system created by the US, so it seems this is could be the beginning of the era of multiple reserve currencies around the world, now some countries will begin to avoid using the US dollar during trades because they do not agree with the monetary policy of the US or because a difference on their political views, and without a doubt something like this benefits bitcoin.

Russian crude oil exports $74 billion.
Apple revenues $365.8 billion.

Some people are really not keeping up with the times, they still believe that the USD is strong because of oil when the oil industry is no longer the money maker it was once, people don't buy and hoard sud because of oil they buy USD because they trust the currency, why is no one of you buying yuans or rupees, why every time there is a crisis people flock tot he exchanges and buys euros and dollars and swiss franks?
I love how the narrative goes, China will drop the USD, by buying 80 billion worth of oil in rubles or yuan while exporting 530 billion to Europe and the US for euros and dollars.

If there is one thing that died a thousand times more than BTC that's for sure the $.

Well, according to Gopinath, the dollar will remain the major global currency, even if it becomes less dominant in the international financial system. Essentially, what's being said here is a continuation of the IMF's stance on crypto regulation, which was outlined last year. Gita Gopinath has advocated regulating crypto rather than banning it, and the organization has been much more lenient to cryptocurrencies since Gopinath came on board.

In one way,this sanctions will reduce the flow of US dollars into the market.When the Russia started to accept the crypto for the payment of oil and exports.Because due to the U.S sanctions,many countries was not ready to trade with Russia.If I was not wrong,this Russian war will increase the demand of the bitcoin and increase the flow of bitcoin in the market.Finally the most important one the price.

Did you properly read the article you posted OP? Putin says he wants transactions "not in other local currency", but in the Russian rubles, a smart economic move for the country to keep their currency relevant amidst the sanctions. Due to the dollar dominance, the United States have freely been able to bully other nations with the threat of sanctions, in the wake of this crisis and how Russia has not headed to the demands of United States, crypto has created an alternative and a means for them to continue their actions.

Unfortunately for the United State,  many other countries that were formerly afraid of the United States due to sanctions are now strongly studying and analysing how Russia is surviving, understanding the role that crypto has played so far, there's a higher chance of them (other countries) being less determined to frustrate the growth of crypto.

I wonder why sanctions on Russia would affect the usage of cryptos and reduce the dollar's dominance. It's not like Russia was an active user of dollars before, and while some international trades will now indeed happen without the USD, there are still local fiat currencies, not to mention the workaround that Russia is doing with Germany, where Germany basically keeps paying for gas in euros but a Russian bank which is NOT banned from SWIFT and not under sanctions would then  convert the money into rubles. I also hope that increased usage of cryptos won't be associated with evading sanctions which were not imposed willy-nilly, but for an aggressive invasion of a sovereign state.

The dominance of USD will fall, still it serves as the reserve. The oil trade from Russia plays a big role in it. Another thing the trade support provided by Russia to its friendly countries. With India Russia have made talks to make trade on Ruble - Rupee which seems to be profitable for both the countries. Maybe on account of this USA might've warned India on oil trade with Russia.

Putin is very keen in making plans, and this will increase the usage of cryptocurrency. Same time this will increase the enemity of USA over Russia.

If USD decreases it's grip on the global economy, there's a good chance it's swapped out with something like Yuan. And having China's currency as the global reserve would probably be more dangerous than USD. Crypto currency would be more ideal, it remains virtually immune from sanctions (no possible way for a country to have their assets frozen) but the issue is that the global market has not adopted crypto yet, so there is little incentive for a country to use a currency that is not accepted by trading partners. I understand this could change in the future, but Russian sanctions aren't going to be the reason with USD still strong. It will be some number of years before people begin ditching USD for alternate currencies. It's eventually coming, perhaps not soon.

I totally agree with IMF on these , The recent geopolitical tensions and the Russian sanctions has already speed up cryptocurrency adoption , I think most countries are already tired of the Petro dollar dominance and are therefore looking for other alternatives like cryptocurrency.  
I guess that any country that sits down and take a microscopic view on the technology behind cryptocurrency would definitely have a thought for it adoption, therefore IMF has seen the resultant effect of the sanctions, and therefore put up this headline.  

This is actually very true, not sure whether Cryptos would get a pump due to this but yes overall it's almost time to ditch the American dollar for international trades, It's not at all stable like it used to be in the past and doing anything which US doesn't likes can put you on the backfoot in the global economic forum, so technically it's a wise decision to stop using it, and we are looking for a new global standard then yes bitcoin can definitely be one of the options.

But I even saw that USD's dominance as a global currency is being challenged by its greatest friend Europe only. See the chart of currencies being used in global trade:

What IMF chief is saying  - is very true! It will not just reduce the dominance of USD but it will allow various countries to use their local currencies than using USD. Crypto is not probably the best medium of exchange for international trade. But local currencies will definitely become useful to bypass the SWIFT ban.

I sometime laugh on the hypocrisy shown by US and UK. These two countries are responsible for most number of wars in the history of mankind. Now they are trying to impose sanctions because some other country is trying to protect their sovereignty by not allowing NATO to install weapons at their border.

USD might reduce dominance, as we can see Russia is already receiving gas payments only in Rubles:

https://www.bloomberg.com/news/articles/2022-03-28/g-7-rejects-putin-s-demand-for-ruble-payments-for-russian-gas

They are already rushing cryptocurrency and bitcoin regulations, as the government and elites clearly saw good use case of them (dodge sanctions, move money freely, etc)

Bitcoin hasn't recovered its ATH yet, but I believe in the long run all those things will have positive effects in its price and adoption.

Gita Gopinath, IMF’s first deputy managing director stated that sanctions imposed on Russia would reduce the dominance of the American Dollars and increase the adoption and use of cryptocurrencies.

The fragmented international monetary system caused by Russia and some friendly nations by bypassing the traditional payment system has definitely reduced the power of the dollar. Russia is desperate to invade sanctions and has agreed to accept cryptocurrencies and other local currencies. Bangladesh and Russia have agreed to trade with their local currencies instead of using the dollars.  Russia and India would soon strike a deal to have rupees and ruble payment system to bypass the SWIFT. It is generally believed that China would be attracted to Russia's discounted oil and would gladly buy from Russia if the payments would be in Yuan. There are still some other nations that a doing a secret deals with Russia using decentralized payment systems bypassing the SWIFT thereby reducing the influence of the dollar.

But it has created opportunities for adoption of digital finance, from cryptocurrencies to stablecoins and central bank digital currencies because their acceptance has greatly increased among nations.


https://www.aljazeera.com/news/2022/3/30/russia-ukraine-putin-being-misled-by-advisers-us-says-liveblog