Russia Could Use Bitcoin To Avoid Western Sanctions Following Ukraine Invasion

Bitcoin Is A Open Door For Russia

In one of the most noticeable events in history, Russian troops formally set foot on Ukrainian land, putting an end to months of speculation about an invasion and triggering plenty of sanctions from NATO and its allies against Russia.

The first sanction was imposed by the United States on Monday when President Donald Trump signed an executive order “Blocking Property of Certain Persons and Prohibiting Certain Transactions” after Russia defied calls to stop undermining Ukraine’s sovereignty and territorial integrity.

On February 24, EU leaders made a pledge to “agree on the harshest package of sanctions we have ever implemented” in an effort to persuade Putin to step down.

President Putin, on the other hand, appears unfazed in his annexation efforts. Some are attributing Russia’s boldness to its recent forays into cryptocurrencies, particularly Bitcoin, which could serve as a buffer against sanctions.

“When the United States barred Americans from doing business with Russian banks, oil and gas developers, and other companies in 2014, after the country’s invasion of Crimea, the hit to Russia’s economy was swift and immense. Economists estimated that sanctions imposed by Western nations cost Russia $50 billion a year. Since then, the global market for cryptocurrencies and other digital assets has ballooned. That’s bad news for enforcers of sanctions, and good news for Russia,” the New York Times wrote.

In contrast to other countries, Russia has taken a positive approach to cryptocurrencies. President Putin recently fasten the creation of a Bitcoin legal and financial framework, this can be seen as an effort to avoid the bad impacts of Western sanctions.

Russia is also the world’s third-largest Bitcoin mining country, according to Bloomberg, with citizens owning cryptocurrencies worth more than $214 billion, or about 12% of the total value of all crypto assets.

Many experts believe that cryptocurrencies have the potential to mitigate the impact of US sanctions because they allow nation-states to conduct transactions outside of the global banking system.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News