Russia Sanctions Will Spur the Adoption of Crypto and Reduce USD Dominance - IMF

[Zlantann]

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

[bitmover]

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.

[avikz]

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.

[teosanru]

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

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:

[Franctoshi]

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.  

[Gyfts]

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.

[romero121]

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.

[kryptqnick]

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.

[Rruchi man]

Russia is desperate to invade sanctions and has agreed to accept cryptocurrencies and other local currencies.

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.

[ajochems]

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.

[decodx]

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.

[stompix]

The dominance of USD will fall, still it serves as the reserve. The oil trade from Russia plays a big role in it.

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 $.

[South Park]

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

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.

[suzanne5223]

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 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.

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.

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.

[KennyR]

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.

“create an individual global settlement system,” which would in turn make it easier for nation states to evade more traditional and regulated payment systems that use the U.S. dollar, euro or yen for settlement.

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

[pooya87]

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.

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".

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.

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

[fzkto]

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.

[Argoo]

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.

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.

[evilgreed]

               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.

[Ozero]

               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 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.