Can Cryptos Offer A Way Out For Russia To Circumvent Sanctions?

Can Cryptos Offer A Way Out For Russia To Circumvent Sanctions?
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The Russia-Ukraine is not only drawing scarily the exact parallels from the second world war, but it is also a crisis on many levels, a high one. As the Crypto market goes, it collapsed to an alarming low of US$35,000 at the onset of the war and continues to slump with each passing day. 

At political upheaval, the country that holds the strings to purse has good leverage. The US used a strategic move by imposing restrictions on Russian banks and similar enterprises, as these are the central finance systems. As the crypto industry is a DeFi industry, as in a Decentralised Finance system that does not require any third party to carry forward transactions, it has been suspected that Russia may use this to move around funds. This situation proves as an excellent example of how the DeFi industry can replace the traditional banking system, although right now, it is just for the tough times. 

Also Read: 1Password Now Lets You Easily Store Crypto Wallet Details

But wait! Russia has more in store. Blockchain technology works on a ledger where all can see the records of transactions in the chain. But the systems that work in Russia can effectively hide the origin of the transaction. Moreover, not even a month ago, Russia announced its digital currency, Ruble, which was put in action by Russia’s central bank. Looking back at it now, all this looks like a calculative move from Russia, as if it had anticipated the US to put restrictions on its banks. 

With this, it is clear that cryptocurrency is changing how financial transactions are being enforced. Of course, Bitcoin has been around for many, many years now, but its value as opposed to significant currency, as in government-backed money, had always been a big question. It is not that it is all so stable now, but it does put forward an example of how it can be used to replace traditional finance. And as currently the names of some big nations are involved, the magnitude of this is on a larger scale. 

Also Read: SpaceX’s Starlink Activated: Invaded Ukraine Requested Elon Musk For Broadband Service

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