So what would happen if Russia went full adoption on BTC as this would be an unregulated alternative.
Would bitcoin be able to actually circumvent the ban, banking transactions cannot be replaced by bitcoin as its adoption is limited and cannoct connect them to the rest of the world. Bitcoin could be used to an extent to confirm some transactions but cannot sufficiently finance all transactions in the country.
In my opinion, this could throw BTC in a black hole, as US and Europe would be forced to ban or regulate it to death. (Quickly)
The U.S and European banks are not financed by bitcoin and it does not influence the SWIFT ban, so there would be no need to regulate bitcoin further.