Post
Topic
Board Economics
Re: Russia can evade sanction through cryptocurrencies
by
Abiky
on 20/09/2024, 07:26:09 UTC
After the Moscow Currency Exchange was banned from using the dollar and euro for international trades, Russia really had big difficulties with payments under interstate agreements. Long before that, Russia tried to switch to using the Chinese yuan, but there were big difficulties with the yuan as well.

Therefore, Russia really wants to try to use cryptocurrency for these purposes. This is evidenced by the bill No. 341257-8 submitted to the State Duma, which allows the Central Bank to launch an experiment on September 1 to create a platform for using cryptocurrencies in international settlements. But Russia's main trading partners - China and India - generally have a negative attitude towards cryptocurrency and it is difficult to imagine how they will trade with it. Moreover, as we know, cryptocurrency has very high price volatility, which introduces a certain instability in settlements.

I'm certain Russia's allies will adopt cryptocurrencies for international transactions sooner than later. Especially when the goal is to circumvent western sanctions. China already opened its arms indirectly through Hong Kong. The "territory" (Special Administrative Region) is beginning to regulate the crypto industry as we speak. Some crypto ETFs were approved by the government. All that's left is for China to make an official annoucement that it will be adopting crypto for international settlements, and "boom".

Such moves will make Western countries angry towards crypto in the future. It's possible we'll see tighter crypto regulations in the long run. That won't stop Russia and its allies from participating in the system (it's decentralized, after all), but it will slow them down at least. We'll see how successful Russia's latest crypto ruling will be. Could this mean we're one step closer to "hyperbitcoinization"? I sure hope so...