The President of the European Central Bank (ECB), Christine Lagarde, has assured that both individuals such as companies in Russia are using cryptocurrencies to circumvent the economic sanctions imposed by the West.
He has done it during 2022 Innovation Conference organized by the Bank for International Settlements.
In his words, the number of rubles being exchanged for cryptocurrencies has reached its highest point since May 2021.
It is not the first time that this possibility has been put on the table. In fact, several cryptocurrency experts had warned about it.
“Putin is not turning to cryptocurrencies”
Russia’s private sector could be using cryptocurrencies to avoid economic sanctions, however, according to various crypto analysts, there is no indication that the government of Vladimir Putin is doing so as well.
However, Michael Mosier, deputy director of the Financial Crimes Control Office (FinCEN), pointed out that, although it is not the main strategy, the use of cryptocurrencies will surely be among the moves that the Russian government keeps. up the sleeve
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It is not clear to Ari Redbord, director of Legal and Government Affairs at the risk management and blockchain firm TRM Labs.
“I do not think that the use of digital currencies is a good strategy to avoid sanctions. The combination of the lack of liquidity in the cryptocurrency market to sustain the Russian economyas well as strict compliance controls in the exchanges of major cryptocurrencieswill make it impossible for the Russian Central Bank to move cryptocurrencies,” Redbord said in a statement to Insider.
Facilitate the exchange of Ukrainian currency to euros
Lagarde has also pointed out that they are observing how many refugees arrive at the borders of Poland, Hungary or other countries with large amounts of cash in the Ukrainian currency, the hryvnia, and encounter endless difficulties in making the change. to euros.
Therefore, as publish the Financial Timesthe ECB and the European Union are working on the creation of a system that allows the exchange of hryvnias to euros for all refugees fleeing the war in their country after the invasion of Russia.