Developments

Russia to join Countries using Cryptocurrency to counter US Sanctions

Over the past few months, the United States of America has engaged in trade wars with several countries and Russia is one of the victims.

It is through these sanctions that Cryptocurrency has proved its usefulness to Russia in evading the placed sanctions. Iran, Venezuela, and North Korea are examples of the countries that are already using Cryptocurrency to counter the economic sanctions placed on them by the US.

How Cryptocurrency helps Russia to counter the sanctions

The sanctions work by limiting individuals, organizations, and countries from dealing or transacting with Americans. It is important to understand that for the sanctions to be effective; they have to be enforced through financial institutions. Since Cryptocurrency does not operate within the limits of regulated financial institutions, it is possible to crypto against sanctions.

The economic sanctions placed on Russia included a disconnection from SWIFT, an internationally accepted banking network. As a result, Russia began work on its Cryptocurrency, referred to as CryptoRuble. Russia hopes that its Cryptocurrency will help connect it to the rest of the world.

Undisclosed sources indicate that President Vladimir Putin issued orders for the Cryptocurrency to be developed so that they could bypass all sanctions and remain anonymous in the dealings.

Crimea, which is a pro-Russia territory in Ukraine, is the most hit by the sanctions. Global payment companies like Mastercard and Visa no longer operate in that region which has caused a financial crisis. Once Russia can complete its cryptocurrency development project, places like Crimea will significantly benefit as they will be able to continue their regular businesses.

Nonetheless, even with its Cryptocurrency, Russia may not be successful in evading all sanctions placed on them by the US. The US has foreign assets control office that lists all US companies and persons that are sanctioned by the US. Any country that deals with the sanctioned countries regardless of the currency being used, (fiat or crypto) faces repercussions from the US.

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coinmag

Daniel is an experienced writer with a keen eye on emerging technologies. He aims at educating the crypto community on the developments within the space.

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