Post
Topic
Board Economics
Re: Russia can evade sanction through cryptocurrencies
by
Sithara007
on 29/04/2022, 17:21:10 UTC
You are right, although the rhetoric of the Central Bank of Russia has softened significantly in relation to cryptocurrencies (against the background of the initial intentions to completely ban them), but Russia's interest in cryptocurrencies lies more in the plane of mining - as a good opportunity to utilize excess energy resources than as a tool to circumvent sanctions. It seems that Russia has learned to live well under the conditions of permanent sanctions, which intensified in 2014 after the annexation of Crimea, including how to circumvent them.

This is the same strategy that was used by Iran to evade sanctions, and it worked out pretty well for them. But after a few months, Iran faced crippling power shortages and was forced to impose restrictions on cryptocurrency mining. I don't think that Russia faces any such issue, as they have surplus electricity. The only issue is that they need to import the mining and cooling equipment from China. But even that should not be a problem, since Russia is having very strong economic relationship with their southern neighbors.