Following Russia’s recent war efforts, it appears that both countries want crypto prohibited.
Due to the continued conflict between the two nations, Ukraine has recently called for “sabotage” of ordinary Russians’ crypto holdings. Many of Russia’s European allies are concerned that Russia may utilize crypto to circumvent Western sanctions.
Ironically, it appears that the Central Bank of Russia, or CBR, is one of the strongest proponents of preventing ordinary Russians and financial institutions from accessing cryptocurrencies. According to local news outlet tass.ru, the CBR is sticking to its position of advocating a ban on cryptocurrency issuance, mining, and circulation in the Russian Federation. According to a CBR official,
“The present position of the Central Bank is that which was previously announced and published on the official website. As a result, there is nothing more to say today.”
Countries often need to drastically boost their spending during times of war, such as by printing additional money, to fund their military endeavors. However, as a result of this, individuals are enticed to convert their native currencies for foreign currencies (including, now, crypto) in order to secure their wealth.
However, this would put enormous selling pressure on the local currency, causing exchange rates to rise and hindering war-funding efforts. As a result, during times of war, countries often impose stringent foreign exchange controls, as Russia and Ukraine have already done. As a result, the risks of crypto destabilizing the Ruble and, by extension, undermining Russia’s war operations may outweigh the advantages of utilizing crypto to avoid sanctions.
The daily Tether (USDT) to ruble trade volume on Binance reached an all-time high of $35 million, according to a research published this week by Arcane Research. Members of the Russian social media community appear to be concerned about the ruble’s declining value and how cryptocurrencies can help them secure their savings. Roman Buchyn, a user, wrote:
“You should buy something cryptocurrencies; the ruble will soon be less expensive than toilet paper.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.