Cryptocurrency will not save Russia from sanctions

[Argoo]

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

Of course, bitcoin will not save Russia as a state from international sanctions. This state has not previously shown due interest in cryptocurrency. On the contrary, they believed that the cryptocurrency would harm state interests and the circulation of the ruble. Therefore, the state did not accumulate bitcoins. Now, after the imposed sanctions, it is already too late to do anything in large volumes with the participation of cryptocurrency, so that this does not go unnoticed by society.

Individual citizens of Russia certainly can and will use the advantages that cryptocurrency gives them. However, not so much in order to circumvent the sanctions, but in order to circumvent the prohibitive measures of their state, which were introduced in order to stabilize their economy from the consequences of these sanctions. The ruble is in a fever and getting cheaper, so those who have the opportunity will transfer their capital to cryptocurrency.

[Etranger]

Of course, bitcoin will not save Russia as a state from international sanctions. This state has not previously shown due interest in cryptocurrency. On the contrary, they believed that the cryptocurrency would harm state interests and the circulation of the ruble. Therefore, the state did not accumulate bitcoins. Now, after the imposed sanctions, it is already too late to do anything in large volumes with the participation of cryptocurrency, so that this does not go unnoticed by society.

Individual citizens of Russia certainly can and will use the advantages that cryptocurrency gives them. However, not so much in order to circumvent the sanctions, but in order to circumvent the prohibitive measures of their state, which were introduced in order to stabilize their economy from the consequences of these sanctions. The ruble is in a fever and getting cheaper, so those who have the opportunity will transfer their capital to cryptocurrency.

What you have described will not only not save the russian economy, but will drive it into an even bigger abyss. People will accumulate savings, they will not use the national currency and will stop the circulation of funds within the state. Everyone wants to save themselves from default, but in fact they create a default by the same desire.

[ChiBitCTy]

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 for the most part I would agree with you on this, however remember you can always make OTC (Over The Counter) trades that they would not be able to stop on control for the most part.  Also they could however use Monero which can’t be seen by them and it’s truly anonymous, so that’s a possibility.

[Pejoh Asu]

To be fully adopted, of course, it will take the Russian government a long time, while the strict sanctions and embargoes have begun to be effectively implemented, in the short term I believe Russia will not be affected by these sanctions. but in the long term, especially groups that are against the government, it will add to the difficulties in the future.

[qwertyup23]

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

Like what I previously replied to this post, cryptocurrencies cannot save Russia from its financial turmoil given that Western businesses and products were pulled-out from their country. Though this might be the case, cryptocurrencies can somehow be a band-aid solution giving Russia some sort of circulation and liquidity on their transactions if they were to integrate cryptocurrencies in their projects.

Unfortunately, I do think that Russia will soon see and feel its effects slowly. Their economy may somehow be the downfall of their country if they could not pacify further the restrictions being implemented to their country.

[ivankoh]

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

Assuming Russia moves to announce its decision to legalize bitcoin, I think this will be resolved.  The pros of bitcoin may be under scrutiny from Russia, but the next reaction if bitcoin is accepted as a form of payment, their RUB will continue to weaken.  In this situation, Russia could begin to face the challenge of another economic war.  I also think Russia will probably forge another link with their partners or allies around bitcoin before they can propose bitcoin at the final peg.

[pooya87]

Still have China on their side.

In reality all countries are mostly on Russian side in action but are against them in words.

Take the sanctions so far, they are mostly jokes. For example the biggest Russian exports is the energy and it is effectively not sanctioned at all. In fact countries that actually banned it (like US and Canada) weren't really importing that much oil, etc. from Russia in first place. Most of Europe that depends on Russian energy is still importing it like before but with the difference that Russia sanctioned US dollar and forced all those countries to pay with Russian currency (or bitcoin) which would strengthen Ruble while weakening USD!

[Etranger]

In reality all countries are mostly on Russian side in action but are against them in words.

I can`t agree with that. Of course, the russian economy cannot, unfortunately, be completely halted in 5 weeks of war. However, sanctions are already having a significant impact. Almost all European countries have stopped flights to russia. They are cut off from the world, from international companies, from the ability to move freely. People lose their jobs, goods disappear from the market. It is no longer possible to go far with some cries about russian gas.

[macson]

Russia has already said it will only accept payments for its oil and gas purchases with Bitcoin and rubles.  Russia realizes that Bitcoin cannot be denied and is a better-made friend.  terms of buying oil and gas with bitcoin and rubles which i think will be a way out of Russia from the sanctions imposed on them.

[Dunamisx]

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

Of course they can, the only entry route they can have to place sanction on Russians account is on those making use of a centralized exchanges but it is not possible in a decentralized wallet, because governments have the CEX being regulated and they can at anytime demand for an access to users data.

[fuguebtc]

In reality all countries are mostly on Russian side in action but are against them in words.

I can`t agree with that. Of course, the russian economy cannot, unfortunately, be completely halted in 5 weeks of war. However, sanctions are already having a significant impact. Almost all European countries have stopped flights to russia. They are cut off from the world, from international companies, from the ability to move freely. People lose their jobs, goods disappear from the market. It is no longer possible to go far with some cries about russian gas.

Its sanctions affect the Russian economy but obviously not significantly, it is Europe who is having worse days in Russia. Europe depends largely on Russian gas, but Russia is not dependent on Europe. In addition to legalizing cryptocurrencies to avoid sanctions, Russia still has its supporters. China and India are ready to buy gas from Russia if the EU refuses, the two most populous countries in the world, so energy consumption will not be inferior to the EU.

[tyz]

In reality all countries are mostly on Russian side in action but are against them in words.

I can`t agree with that. Of course, the russian economy cannot, unfortunately, be completely halted in 5 weeks of war. However, sanctions are already having a significant impact. Almost all European countries have stopped flights to russia. They are cut off from the world, from international companies, from the ability to move freely. People lose their jobs, goods disappear from the market. It is no longer possible to go far with some cries about russian gas.

Don't be so Europe-centered. Almost no country in Asia and Africa for example, have implemented sanctions against Russia. China and India alone have almost 3 billion inhabitants. That is five times as much as entire Europe and three times of all Western countries together. Both China and India have not turned against Russia and continue to trade diligently with the country.

Moreover, Europe continues to buy oil and gas, in part undermining its own sanctions. This can be seen in the value of the ruble alone, which has significantly improved again and is almost at pre-war levels.

[Rockstarguy]

Russia was giving sanctions that maybe affection their economy even if its not to serious. Russia accepting cryptocurrency and collect bitcoin as payment for their oil is the only option Russia can help their economy.  Cryptocurrency may not be giving Russia everything they want but atleast its working for them, it would have been difficult for Russia.

[Etranger]

Don't be so Europe-centered. Almost no country in Asia and Africa for example, have implemented sanctions against Russia. China and India alone have almost 3 billion inhabitants. That is five times as much as entire Europe and three times of all Western countries together. Both China and India have not turned against Russia and continue to trade diligently with the country.

Moreover, Europe continues to buy oil and gas, in part undermining its own sanctions. This can be seen in the value of the ruble alone, which has significantly improved again and is almost at pre-war levels.

Its sanctions affect the Russian economy but obviously not significantly, it is Europe who is having worse days in Russia. Europe depends largely on Russian gas, but Russia is not dependent on Europe. In addition to legalizing cryptocurrencies to avoid sanctions, Russia still has its supporters. China and India are ready to buy gas from Russia if the EU refuses, the two most populous countries in the world, so energy consumption will not be inferior to the EU.

I agree that if we look at the trade aspect, we cannot focus entirely on Europe. However, in other aspects, such as tourism, culture, education, Europe is perceived by post-soviet countries as a model and reference point. In russia, most people know about European cultural and artistic heritage, not about Indian or African, for example. The situation is the same with tourism. Therefore, the closure of European borders for russia is perceived more painfully and noticeably, even though trade with many other countries, unfortunately, continues.

[teosanru]

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

This was pretty obvious. Even if it is headed to the Russian Government and not tracked, the amount we are talking about here is in Billions, how do you think is Russia going to convert billions kept in cryptocurrencies to fiat just like this only? How will it find a buyer who is willing to give them rubles in return? They definitely cannot directly approach any exchange for the money, this in itself was a stupid hypothesis until and unless the lenders are ready to take back their repayments in cryptocurrencies but even that won't happen because most of the lenders would be sovereign banks, who too would face the same issue. 

[The Cryptovator]

If you know how Bitcoin works, you should realize it's impossible to trace it the right way. At least Russia does not use Bitcoin for the crime. Bitcoin would help them make international transactions, but the problem is its not officially approved by each country. So through Bitcoin not possible to ignore sanctions at all since the world still depends on paper money. But the as media said monitoring transactions and flag them is quite impossible. That won't happen ever.

[jostorres]

Don't be so Europe-centered. Almost no country in Asia and Africa for example, have implemented sanctions against Russia. China and India alone have almost 3 billion inhabitants. That is five times as much as entire Europe and three times of all Western countries together. Both China and India have not turned against Russia and continue to trade diligently with the country.

Moreover, Europe continues to buy oil and gas, in part undermining its own sanctions. This can be seen in the value of the ruble alone, which has significantly improved again and is almost at pre-war levels.

The war is basically between the west and Russia, which means that when we are talking about that, we talk about west vs Russia. If we were to check the % of the nation in the world and how many of them have sanctions, we would probably stay under 30% or so that have sanctions, probably closer to 10% if you consider those small island places as well.

This is why I honestly do not think that there is a big problem with the west thinking that it should matter than they do, but at the same time they are right about this one because thats the main topic. Nobody says Latin America have sanction, they just know that Europe is close and rich, so it should matter and for this time they are right.

[laurenB7742]

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

Russia is a self-sufficient country, Putin is not a fool or a child. He knows very well what to decide. Such a free movement of NATO is not a pleasant thing at all.

If Russia and China become one now, World War III will be certain.

I think legalization of cryptocurrency is a big decision for them,
In just one attack, Ukraine's Fiat Money has become worthless. The ruble has fallen significantly. I think, People now understand the real need for Bitcoin.

[7788bitcoin]

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

Why would Russia convert Bitcoin into fiat, if at all they will convert them to Bitcoin to make global transaction and avoid the sanctions, but one thing is true, if there is a large amount of Bitcoin accumulation, it can be monitored and if a state or a country does that, it is easy to identify them. But in order to avoid these restrictions they will have alternative ways because they are having close ties with China and they will help them in overcoming the SWIFT blockage.

[KennyR]

Slowly Russia is trying to come out of the sanctions through its friendly countries. As a beginning rupee- ruble trade mechanism is under development. How does the trade mechanism work

When an Indian bank is finalised, Russia will deposit ruble in it, while India will deposit rupees. A notional exchange rate (that determines how many rubles are equivalent to a rupee) will be arrived at by pegging it to an international currency, “most likely the dollar”

Similar trade mechanism is set up to import Iranian oil when the US imposed sanctions against that country. Russian foreign minister Sergey Lavrov visited China and have reached India to make talks. It looks like everything is successful and more friendly countries of Russia will be considered for the same.