Why cryptocurrency is a "useful tool" for Russia evade western sanction?

figmentofmyass

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Quote from: PRDAEcontact on January 02, 2018, 01:21:41 PM

"According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions."

Why cryptocurrency would be a "useful tool" for Russia evade western economic sanction?

as long as we define "cryptocurrency" as "decentralized," then it's useful because no central authorities can prevent payment, so sanctions cannot be easily enforced. centralized currencies like XRP/ripple or USDT couldn't be used, though, because they have centralized administrators and validators who could enforce sanctions.

because BTC is highly transparent and not anonymous, it might not be ideal for dodging sanctions, but combined with elaborate networks of shell companies, it could certainly help to give russia an edge in the "cat-and-mouse" nature of sanctions enforcement. when more private cryptocurrencies like monero have higher global trading volumes, they could provide a further layer of obfuscation to their sanction evading strategy.

aso118

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Quote from: PRDAEcontact on January 02, 2018, 01:21:41 PM

" According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions."

Why cryptocurrency would be a "useful tool" for Russia evade western economic sanction?

All decentralized cryptocurrencies, including Bitcoin, can be used. Forget Russia, it is speculated that even countries like North Korea are building a stash of bitcoins. One good thing about this is that the hegemony of the United States and its banks is being challenged.

greeklogos

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Bitcoin or crypto is going to become international tool for payments one day. I think the reason is that no one own it actually. Will Russia ever accept dollar for payment? No. Will the USA ever accept rubl for payment? Also no. But bitcoin and crypto is faceless and everybody can use it without any political preconceptions.

Alns

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It depends on what are they saying on that notice, as far as i know the countries from there doesn't have any law against bitcoin, and that is why they are trying to use it as a "tool"

But there is nothing to be worried about, the Russia government is not going to ban bitcoin (just like a lot of people said before)

Probably russia will be one of the only countries who will start legalizing bitcoin at a one hundred percent.

CryptoBitCoins

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Sanctions against Russia are based on the fact that you can not officially trade in certain products and services. In fact, using the anonymity bitcoin, you can use it to cover up some kind of fraud. Here is an example for clarity: "Russia wants to buy a Mercedes from Germany, but sanctions do not allow it.мThen, by an anonymous person, sends the right amount of bitcoins to another purse (also anonymous), and so payment for Mercedes will be made and it will be delivered to the territory of Russia, officially, Germany did not violate the terms of the sanctions, but Russia got what she wants."

Barbarian

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Quote from: PRDAEcontact on January 02, 2018, 01:21:41 PM

" According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions."

Why cryptocurrency would be a "useful tool" for Russia evade western economic sanction?

Bitcoin is a tool that will enable them to do that since bitcoin is not controlled by governments or banks however that can play against them as well and that something they are not seeing, they are thinking of ways to benefit themselves and they are not seeing that the west can do the same against them.

Anti-Cen

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High fees = low BTC price

Yes us in the UK need to watch them evil ruskies you know and about four months ago they was sailing this big
fuck off aircraft carrier toward Syria and the cheeky buggers past down the side of waters surrounding our island
instead of going the other way around the world you see.

We was having none of it and gave these evil commie bastards an naval escort just in case they tried something
on you see with our tiny little boats and the story was all over the BBC news

Last week we got a surprise visit that was kept out the news from Russia because we was freezing and Mr Putin
kindly sent us another fuck off big ship full of LPG because our gas reserve was low.

Take it from me people we are being feed a 1984 cold war soap opera when it comes to Russia and if you think
I am wrong then did you know that both Bp and Exxon oil are still drilling for oil from inside Russia.

NeuroticFish

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Quote from: PRDAEcontact on January 02, 2018, 01:21:41 PM

" According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions."

Why cryptocurrency would be a "useful tool" for Russia evade western economic sanction?

It's because they are just not used to control the flow of goods; it's because they've got used to just control the money flow. Before, it was easy: big quantities of money could only get transferred through banks.

Embargo meant Russia could not pay for the goods. But with cryptocurrencies, now they can. And until EU & Co learn to control the flow of the goods... the embargo is not effective.

And unfortunately the control of goods is also more costly, which EU citizen will not really like, so it's getting complicated.

audaciousbeing

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Quote from: PRDAEcontact on January 02, 2018, 01:21:41 PM

" According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions."

Why cryptocurrency would be a "useful tool" for Russia evade western economic sanction?

If only you knew the effect to security challenge if Western countries decided not to sell weapons to countries that needs it the most, or they decide to just divert it to the rebels against the current government of a country? It can tear the country apart. That's just on the basis of security. Now compare it to the effect in the case of trade embargo, trade sanctions as ordinary citizens we might not know the effect but the people who are saddled with the responsibility of ensuring the sanity of the society will have to go extra mile in ensuring the mitigating effect of such sanctions, is not devastating.

The primary reason for that is just control, today, the Western nations all have nuclear weapons but would sanction other countries that wants to have one because they control the world market, they have the technology, nations keep their foreign reserves in their currencies etc. The moment that is taken away, all those sanctions are just speeches without any effect.

achow101

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Quote from: PRDAEcontact on January 02, 2018, 01:21:41 PM

" According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions."

Why cryptocurrency would be a "useful tool" for Russia evade western economic sanction?

Because cryptocurrencies are not under the control of western countries. Cryptocurrencies like Bitcoin are completely decentralized and do not have a central authority (be that private a private group or a government) controlling it.

PRDAEcontact

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" According to the Financial Times, Sergei Glazev, an economic adviser to the president, told a government meeting that the cryptocurrency would serve as a "useful tool" to evade western economic sanctions."

Why cryptocurrency would be a "useful tool" for Russia evade western economic sanction?

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