Cryptocurrency will not save Russia from sanctions

[Accardo]

Considering the numerous restrictions on the Russian Government they are still strict measures on every transaction that is displayed on the Blockchain. Any huge amount of money moved into a wallet will be flagged and checked if it's headed to the Russian Government. And it'll be difficult for Russian Government to convert a huge Bitcoin into Fiat as well. Do you think they can get around the corner and still escape the numerous financial restriction on their country through Bitcoin or altcoin

https://www.aljazeera.com/economy/2022/3/1/crypto-will-not-save-russia-from

[yazher]

Don't believe what mainstream media said about bitcoins because most of them are hostile against it and they are ready to publish some news regarding it if some countries will use it as an effective alternative to save their economy. That's the same media who said earlier that Belarus has now became the puppet of Russia, they just said it directly without a second thought and all of the comments are against them right now.

[Darker45]

Of course. There are limits to what Bitcoin and other cryptocurrencies could do. While the use of Bitcoin could probably ease the sanctions in certain aspects, it is helpless in many. After all, the sanctions are imposed on fiat accounts and banks and reserves. What could Bitcoin do, for example, if the Kremlin's hundreds of billions of US dollar in foreign reserve is frozen? How could Bitcoin be of help to the elites in Russia if the sanction is depriving them of access to their foreign bank accounts?

[Accardo]

Of course. There are limits to what Bitcoin and other cryptocurrencies could do. While the use of Bitcoin could probably ease the sanctions in certain aspects, it is helpless in many. After all, the sanctions are imposed on fiat accounts and banks and reserves. What could Bitcoin do, for example, if the Kremlin's hundreds of billions of US dollar in foreign reserve is frozen? How could Bitcoin be of help to the elites in Russia if the sanction is depriving them of access to their foreign bank accounts?

In that aspect bitcoin cannot help Putin access the $600+billion in their foreign bank account. But, for the sake of some minor transaction I think bitcoin will be a helping hand to Russian citizens and not the Government since the huge sum of bitcoin transaction would be gazed on razor sharp by the USA.

[uneng]

Theoretically it could be possible through anonymous altcoins and crypto mixers. A powerful country, with elite skills in spying and infiltration can try moving funds making use of cryptocurrencies.

On the other hand, nothing can be 100% prevented to be discovered. If intelligence services from another countries monitor these funds and potential receivers/negotiators at countries where it's forbidden to deal with Russia, people involved on these negotiations will be severely penalized.

[mk4]

If people say that Bitcoin can be used to "save" a certain something, most of the time people don't mean that it can literally replace it 100%, or that it literally doesn't have drawbacks. Bitcoin in it's current market state obviously can't be a permanent solution for most problems, yet.

[franky1]

if china didnt ban bitcoin. then russia would have used the ruble-yuan-bitcoin-dolar route

but right now russia doesnt need to do that because they can just ruble-yuan-dolar
US/UK/EU have no issue with the chinese transfers. and for years russia has always had shell companies set up in china. so russia is still going to find ways to get dollar/euro/pound, via its chinese subsidiaries

that said russia is also less reliant on dollar, russia doesnt need dollar/euro/pound as much as it used to
in 2005 it had 98% reliance on the US payment systems for international trade, but in 2020 is was under 50% reliant. and with the invention of m-bridge and CBDC that number will get even lower, especially now the sanctions are in place.

and with things like CBDC and m-bridge which is also linking to Switzerland, Thailand. i feel that the US 'world bank' is going to lose its grip on world dominance.

the BIS (china's alternative to the IMF) is heading up CBDC and will save russia from sanctions from the west

i feel the next stage is if the US/UK/EU start sanctioning china. this can cause a storm the US/UK/EU is not ready for

[cabron]

^ They are all sanctioning countries related to Russia including Belarus this time.

Don't believe what mainstream media said about bitcoins because most of them are hostile against it and they are ready to publish some news regarding it if some countries will use it as an effective alternative to save their economy. That's the same media who said earlier that Belarus has now became the puppet of Russia, they just said it directly without a second thought and all of the comments are against them right now.

The article is not totally hostile to cryptocurrency. Their so-called expert also said and I quote:

Although the sanctions against Russia are designed to put pressure on Moscow, they may hasten the arrival of the new financial order the US has warned about, Ryan Selkis, founder of crypto research firm Messari, told Al Jazeera

As a result of this situation, two countries publicly use cryptocurrencies such as Ukraine and Russia. That adds to the list although they have expressed it before which the global financial system is exposed to the new generation of wealthy kids that would also stand up against it one day.

[Darker45]

Of course. There are limits to what Bitcoin and other cryptocurrencies could do. While the use of Bitcoin could probably ease the sanctions in certain aspects, it is helpless in many. After all, the sanctions are imposed on fiat accounts and banks and reserves. What could Bitcoin do, for example, if the Kremlin's hundreds of billions of US dollar in foreign reserve is frozen? How could Bitcoin be of help to the elites in Russia if the sanction is depriving them of access to their foreign bank accounts?

In that aspect bitcoin cannot help Putin access the $600+billion in their foreign bank account. But, for the sake of some minor transaction I think bitcoin will be a helping hand to Russian citizens and not the Government since the huge sum of bitcoin transaction would be gazed on razor sharp by the USA.

Yes, of course, Bitcoin could still be a helping hand not just to the ordinary Russian citizens but also the government. But, like I said, it has its limits, especially now that all kinds of sanctions are already imposed. Things could have been a lot different had the government and its people acted prior to the invasion and the imposition of sanctions. But things like cross-border transactions which the sanctions on banks are heavily disrupting could still be remedied with the use of Bitcoin.

Of course. There are limits to what Bitcoin and other cryptocurrencies could do. While the use of Bitcoin could probably ease the sanctions in certain aspects, it is helpless in many. After all, the sanctions are imposed on fiat accounts and banks and reserves. What could Bitcoin do, for example, if the Kremlin's hundreds of billions of US dollar in foreign reserve is frozen? How could Bitcoin be of help to the elites in Russia if the sanction is depriving them of access to their foreign bank accounts?

Yes what you say is true, all of that could have happened if they had known that bitcoin could help the Russian economy at this time.
It is very sad what is happening right now in their country.
Hopefully all the regulations and sanctions will not happen so that they can still use their foreign banks.

It is indeed very sad, but I wouldn't hope that all the regulations and sanctions are lifted. Putin has to be brought to his senses.

[romero121]

Russia can experience little relaxation using bitcoin against the sanctions. Even if you have fiat, now it isn't an easy thing to convert fiat to cryptocurrency in Russia. In my understanding maybe the usage of bitcoin could help with some 2-4% of the economy. A complete economic stability out of bitcoin in a country like Russia isn't a possible fact. Now the latest sanction is done by Apple. No more apple products sold in Russia.

[so98nn]

I think it won’t help much. It can give some limits of protection like securing some of the fiat money over blockchain in the form of different currencies. However I see a major problem here, there is long que of the peeps to get couple of hundred rubble form the ATM.

All the media showing how Russia is already short of cash and banks can’t spare their money just like that in the middle of war.

So highly doubt they will allow any fiat to crypto transaction at this time.

[crwth]

I'm curious how Chainalysis have concluded in the article that the ransomware revenue is highly affiliated with Russia.  I just read this article and now understand how they concluded it.

https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-russia-ransomware-money-laundering/

Some of the wealthiest people have probably found a way to keep their value by buying crypto.

[Argoo]

Russia can experience little relaxation using bitcoin against the sanctions. Even if you have fiat, now it isn't an easy thing to convert fiat to cryptocurrency in Russia. In my understanding maybe the usage of bitcoin could help with some 2-4% of the economy. A complete economic stability out of bitcoin in a country like Russia isn't a possible fact. Now the latest sanction is done by Apple. No more apple products sold in Russia.

International sanctions are multilateral and relate to various aspects, including Russia's exports and imports, the ban on using the dollar, euro, pound, yen for settlements, and other severe restrictions in the financial sector. Therefore, cryptocurrency cannot serve as a salvation for the Russian economy. Russia with its ruble becomes an outcast for the world. In some cases, sanctions are even applied to Russia's trading partners, so the Putin regime will have a very hard time. You have to pay for your crimes, although ordinary citizens will feel the sanctions to a greater extent. But they cannot be called innocent of the aggression against Ukraine. The people of Russia are to blame for not stopping Putin for so many years.

[Poker Player]

Theoretically it could be possible through anonymous altcoins and crypto mixers. A powerful country, with elite skills in spying and infiltration can try moving funds making use of cryptocurrencies.

That's what I thought. Aside from the fact that I don't think they are thinking of cryptocurrency as the only possible escape route from economic sanctions. The most recent economic measures are about the ruble, not cryptocurrencies.

I would like to see the beginnings of de-escalation in all this, but we are going in the opposite direction. I hope that at some point common sense will prevail and we will not end up with the destruction of humanity.

[Retainly_Collie]

I see the problems you mentioned are directly affecting me to a small extent compared to the whole way of working inside. We should look at the problem more simply when Russia when sanctions are introduced. Here we see the interplay of the entire global economy. And as for BTC to save Russia, I find it unreasonable and also very relative on the issue of the government's needing money to sell BTC, because I simply don't think that will be the way they choose to maintain the economy.

[Hiveonm]

Such a war between countries is really insecure. Although many people in Russia transfer assets with cryptocurrencies, there are many more people who do not know cryptocurrencies and have not received cryptocurrencies, so I think this It may be time for Bitcoin to really meet everyone with a big event.

[tbct_mt2]

Russia is fine. Russian elites especially Putin are fine if he won't be taken down from his regime.

Only Russians have troubles and we see on media how they panic went to ATMs and banks for money withdrawals. In addition, we can feel how bad their finance is short term when Rube lost its value a lot in the last week. Now there is rumor (I am not sure it has been officially yet) that Putin orders local banks and agencies there don't allow Russians to go abroad with more than $10,000.

What the fucking regime! They can do anything they want on behalf of people.

[pooya87]

Considering the numerous restrictions on the Russian Government they are still strict measures on every transaction that is displayed on the Blockchain. Any huge amount of money moved into a wallet will be flagged and checked if it's headed to the Russian Government. And it'll be difficult for Russian Government to convert a huge Bitcoin into Fiat as well.

These are wrong arguments, and I'd say a little naive.
Because at bigger level where governments are involved, if any of them wanted to send money to Russian government, nobody could prevent it. So they don't need bitcoin or any other cryptocurrency. In fact the Russian allies, or countries with shared interest, like China don't care about these things and will keep their relationship and trades through the financial channels they open up way before this conflict began.

Bitcoin will remain as it has ever been, for people to regain their financial sovereignty. Whether it is in Russia, Ukraine or anywhere else.

The sanctions are also not targeting the government, despite what they may tell you. They target regular people. For example when the airspace was closed to Russian and Russia reciprocated, it is now Europeans who can no longer travel since the main route to a lot of east Asia was shut down and the alternative routes cost a ton more that neither the airlines nor people can afford to pay.

What the fucking regime! They can do anything they want on behalf of people.

In other words there is no difference

[Oasisman]

Considering the numerous restrictions on the Russian Government they are still strict measures on every transaction that is displayed on the Blockchain. Any huge amount of money moved into a wallet will be flagged and checked if it's headed to the Russian Government. And it'll be difficult for Russian Government to convert a huge Bitcoin into Fiat as well. Do you think they can get around the corner and still escape the numerous financial restriction on their country through Bitcoin or altcoin

https://www.aljazeera.com/economy/2022/3/1/crypto-will-not-save-russia-from

Well, they don't even need Bitcoin for them to get their international monetary transactions to get through.
China didn't imposed any sanctions to them and they don't even care what the Russian government are gonna do with Ukraine. So, most probably Russia will just convert into Chinese yuan and nobody would ever know it.

Putin isn't afraid of any sanctions the world will impose to them, he knows what's his country's capabilities plus they have China.

[care2yak]

Considering the numerous restrictions on the Russian Government they are still strict measures on every transaction that is displayed on the Blockchain. Any huge amount of money moved into a wallet will be flagged and checked if it's headed to the Russian Government. And it'll be difficult for Russian Government to convert a huge Bitcoin into Fiat as well. Do you think they can get around the corner and still escape the numerous financial restriction on their country through Bitcoin or altcoin

https://www.aljazeera.com/economy/2022/3/1/crypto-will-not-save-russia-from

when crypto is used as fiat, any economy can survive.

i think that's the next step that economies will need to take. adopt cryptocurrencies -- accept crypto payments for goods or services rendered.

traditionally, we use fiat to acquire what we need. to facilitate trade where the local fiat has almost lost is value, cryptocurrencies will prove beneficial. let us not forget that we have stable coins whose value is pegged against the us dollar so anyone's buying power will not be undermined.

the problem though will lie on wallets when internet service is unavailable. how do we get p2p verified transactions without internet service....