Cryptocurrencies could “take the throne” in Russia as people try to avoid sanctions

Bitcoin miners in Russia are still operating as usual, despite the country’s “all-out invasion” of Ukraine this week.

Accordingly treasure According to the Cambridge Bitcoin Electricity Consumption Index, miners in Russia account for around 11.2% of the global BTC hashrate as of August 2021. The impact of sanctions imposed on the government is currently unknown. Russia originated from the United States and allied NATO countries the local BTC sector and the broader market.

While several crypto miners such as Ethereum-focused Flexpool have suspended their services in Russia in response to the invasion, bitcoin mining company Compass Mining has confirmed to Russian customers that its infrastructure and mining tier remain active in the region will.

Compass Mining CEO Whit Gibbs prayed for all affected by the conflict and assured the community that the Eastern European assets safely located in Serbia will not be affected by “geopolitical instability”.

The Biden administration said Thursday (Feb. 23) it would impose “broad financial sanctions and tough export controls” on top Russian financial institutions, the government, senior officials and the tech sector.

Many have argued that this could be the moment when Russia’s crypto sector thrives as it could soon become an important tool to avoid various sanctions.

In a press release to investors on the morning of February 25, Anthony Pompliano, co-founder of Morgan Creek Digital, emphasized that the Russian government could use this moment as an opportunity to decouple from the dollar reserve system and return to a decentralized global appeal:

“This game theory leads us to Bitcoin. The best choice to be a producer and distributor of global reserve currency is to be the most advanced user and holder of global reserve currency over which no single country has control.”

“It lets these superpowers see that Bitcoin is inevitable for decades to come. Countries with high levels of ownership, along with mining and other pro-bitcoin activity in their countries, will have a significant advantage.”

VanEck’s head of digital asset research, Matthew Sigel, echoed the same sentiment, noting that the Bitcoin network will allow Russia to mitigate the potential damage caused by its withdrawal from the western financial system:

“Neither dictators nor human rights activists will face censorship on the Bitcoin network.”

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

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page