Cryptocurrency will not save Russia from sanctions

[mrongoz_imut]

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.

[1715293036]

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[valentine wheeler]

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.

[Lucius]

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

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?
 

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.

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.

In total, the sanctions will keep approximately $1 trillion in Russian banking assets from flowing through the markets of the U.S. and its partners' financial systems. The sanctions also limit tech exports to Russia and squeeze the country's tech industry. But it could take quite a while — even years — for the sanctions to hurt the Russian economy, said Brian O’Toole, who until 2017 served in the U.S. Department of the Treasury as a senior adviser to the director of the Office of Foreign Assets Control, which administers and enforces trade and economic sanctions

[Adbitco]

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)  

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/

[theymos]

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.

[Slow death]

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

[Gyfts]

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.

[JayTrain]

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.

[romero121]

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.

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.

[Maslate]

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.

[Odusko]

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 witnessed the centralization collapse of safe assets this time, and the money of smart people will speed up. Bitcoin Enter the big bull market.

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

[darkangel11]

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.

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.

[Henrobakkara]

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.

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?

[retreat]

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

in crypto there is no difference, this is what makes crypto the currency of freedom. Even though the war between Russia and Ukraine is raging, those from both countries (government or citizens) will continue to be free to carry out crypto transactions. Major exchanges have also stated that they will not freeze accounts originating from Russia, so I believe bitcoin is Russia's solution when economic pressure hits.

[Ararbermas]

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.

i think that's not true, i mean a fake news because even Russian have $10,000 it still very impossible to go abroad since president biden already declared that all Russian aircraft are banned from American airspace (link. )

So they don't have any choice and surely most of them will suffer from the sanction, unless if they will rely with crypto so that at least they can relax a little bit from the problem that they're facing right now.

[JayTrain]

in fact, restrictions are applied where this bitcoin will be cashed out, and if it is transferred between wallets, then I think nothing can be done here, because Satoshi took care of decentralization when he created bitcoin, I think politics has no place in cryptocurrency...but we don't see it that way today.

[hatshepsut93]

Did you  miss the part where tons of companies voluntarily decided to cut ties with Russia? Bitcoin won't help in situation like that. And it's not needed or practical for trading with China or India. They could use it as a reserve asset, but gold has proven itself to be better.

[Accardo]

Did you  miss the part where tons of companies voluntarily decided to cut ties with Russia? Bitcoin won't help in situation like that. And it's not needed or practical for trading with China or India. They could use it as a reserve asset, but gold has proven itself to be better.

Probably, I read somewhere that Russia still have 132 billions of Dollars worth of Gold in the Bank of Russia vault which can keep Ukraine on hold for a long period of time. And they can tap from countries like China that have refused to pass sanction on them. It's a difficult time for the world but what matters is for the war to come to an End.

[Ozero]

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.

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.

We are talking about whether the cryptocurrency will save the Russian Federation as a state from international sanctions. If we consider from this side, then we must say that no, it will not save. Including the citizens of Russia who fell under these sanctions. The fact is that not only transactions are tracked, but also the movement of goods. If Russia is prohibited from supplying certain types of goods, then all participants in such a transaction will become aware of their supply for any currency, including cryptocurrency, and they will also face sanctions. Therefore, now that there is not even an embargo on Russian energy resources, even China does not really want to buy oil and gas from Russia, so as not to damage its image. Putin's Russia is rapidly becoming a pariah. And this is just the beginning.
Recently there was information that the Russian propagandist Solovyov, who was under sanctions, had two villas confiscated in Italy. What difference does it make for what currency or cryptocurrency he bought them for. The sanctions are working.

[milewilda]

Did you  miss the part where tons of companies voluntarily decided to cut ties with Russia? Bitcoin won't help in situation like that. And it's not needed or practical for trading with China or India. They could use it as a reserve asset, but gold has proven itself to be better.

Probably, I read somewhere that Russia still have 132 billions of Dollars worth of Gold in the Bank of Russia vault which can keep Ukraine on hold for a long period of time. And they can tap from countries like China that have refused to pass sanction on them. It's a difficult time for the world but what matters is for the war to come to an End.

If they do have that kind of reserve amount or assets then this would still be a long invasion situation and we are all hoping for this war to end considering that there are lots of innocent lives been waste
of due to this situation.I wont be surprised if there would be some instances that Putin would be kicked out on being President, it is just they are really that afraid.
Sanctions is everywhere and i dont know on why people do consider out bitcoin as some sort of saviour.