Cryptocurrencies, Russia’s ultimate weapon against the embargo?

Despite the low adoption of cryptocurrencies in Russia, the country is about to go all-in on cryptos. For Russian Deputy Finance Minister Alexei Moiseev, the current global geopolitical environment makes crypto transactions inevitable. Russia could make use of cryptocurrencies for its cross-border transactions to circumvent the embargo.

Embargo on Russia boosts Bitcoin and cryptocurrencies

The news was reported by Tass, a Russian news agency.

Alexey Moiseev, Russia’s deputy finance minister, was quoted as saying that it has become “impossible to do without cryptocurrency payments.” At fault is the “current geopolitical context.” The latter is certainly referring to the country’s war in Ukraine, but above all, to the economic sanctions against Russia.

Indeed, as we already talked about in this article, several sanctions have been taken against Russia. Thus, hundreds of billions of dollars of the country have been frozen by the European Union and NATO. That’s not all, several Russian banks have also been disconnected from the SWIFT network.

In such a context, it is normal for Russia to look for uncensored ways to trade with foreign countries. And what better way to do this than with crypto-currencies like bitcoin? The Russian authorities have apparently understood this. Nevertheless, they do not intend to adopt cryptos without having any control over users’ funds.

In a television interview, Alexey Moiseev stressed the need for the Russian central bank to have a grip on the use of cryptocurrencies in the country.

Now people are opening cryptocurrency wallets outside the Russian Federation. It has to be possible to do this in Russia, it has to be done by entities supervised by the Central Bank, which are required to comply with the requirements of the anti-money laundering legislation, and above all, of course, to know their customer.

Alexey Moiseev, deputy finance minister

Bitcoin, the last bastion against financial censorship

Both Russia and Iran have come a long way in getting to cross-border cryptocurrency transactions. After many years of blowing hot and cold regarding bitcoin adoption in both countries, it is finally their resistance to censorship that is appealing to nations on bad terms with Western powers. Many countries and individuals are turning to bitcoin to circumvent the financial embargo.

On the side of Iran, the adoption of cryptocurrencies is moving faster. In fact, the country has conducted its first cross-border crypto transaction. This trend could continue. “But bitcoin is for the bad guys,” you might say! Defining who is bad or good is not our role. But one thing is certain: bitcoin has no political color. If the Russians could use it to get around the sanctions, let’s also remember that Ukraine collected millions of dollars in bitcoin to finance the war effort against Russia.

Thirteen years after its inception, bitcoin continues to fulfill its promise as the asset of choice for exchanging value without asking permission. Nakamoto’s invention is also on the inflation front in Venezuela, Argentina, El Salvador and other skies. Long considered “the geeks’ currency,” more and more states and individuals are getting hold of bitcoin, each for their own reasons. Hyperbitcoinization is advancing on all levels, and in the long run Bitcoin will be the winner.