Post
Topic
Board Economics
Re: Russia can evade sanction through cryptocurrencies
by
Mario Vella
on 01/04/2022, 07:18:56 UTC
Sanctions are not a complete game-changer when it comes to crypto adoption in Russia.

If your average Russian starts using crypto, this will devalue the ruble even more - that, in turn, would weaken Russia’s power. The Russian government will never allow their own currency to lose value, in exchange for non-government-specific one. Every time Russians exchange their rubles for Bitcoins, the Bitcoin price will grow, because the demand will affect the market, and the ruble will crash further.

In addition, the Russian government issued new laws that limit Russian citizens from sending, receiving, and transacting with any foreign currency. Russian citizens must convert 80% of the total sum into rubles in three days, or risk getting fined. So, even if you reside in Russia, and trade your cryptocurrencies into USD or EUR, you will need to switch it to rubles, therefore mass adoption ir practically impossible. Less than 0,3% of the total global net worth is currently in crypto. Let’s transfer this to Russia - even if 0,3% of Russians hold a lot of cryptocurrencies, that’s still a very small number. In circumstances like these, sudden and unexpected mass adoption within the country is simply impossible.

Crypto is just too small to make a real difference for them!

This video explains the situation pretty well:
https://youtu.be/2vVj6jAuBNE