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Janet Yellen warns of Russian government maneuvers
11:00 ▪ 3 min read ▪ by Mikaia A.
Since the start of the war in Ukraine, Russia has been looking for alternative ways to circumvent Western sanctions and keep its economy afloat. In addition to oil sales, Russia’s use of cryptocurrencies has garnered a lot of attention. Data shows a growing adoption of cryptocurrencies to evade economic restrictions. The United States, for its part, is closely monitoring the situation and expressing serious concerns.
Russia and the Cryptographic Scheme
Russia, under international pressure, has found Cryptocurrencies, a potential escape route for financial transactionsThe Bank of Russia, under the leadership of Elvira Nabiullina, recently advised the use of digital assets for mitigate the impact of sanctions.
Nabiullina said that new financial technologies enable unprecedented payment systems, thereby facilitating international transactions despite restrictions.
Indeed, Russia has intensified its trade with countries such as China, Indiathe United Arab Emirates and Turkey, often bypass traditional financial systems.
Cryptocurrency Offer a certain freedom avoiding the strict controls and regulations imposed by sanctions.
They enable faster and more anonymous fund transfers, making international transactions more flexible.
The US Treasury Secretary, Janet Yellen, expressed his concerns before the House Financial Services Committee. She stressed that even though the Russia’s use of cryptos is not yet significant, This could change as sanctions become more severe.
A real challenge for sanctions
Cryptocurrencies pose a major challenge to economic sanctions, offering Russia a viable alternative to maintain its international trade. The Bank of Russia has encouraged companies to adopt these new financial technologies and has not banned Bitcoin (BTC).
U.S. Representative Brad Sherman expressed concerns that cryptocurrencies and stablecoins like USDT could help Russia evade sanctions and other laws, including tax laws.
A quote from Sherman illustrates this threat well:
“A stablecoin does not offer any particular advantage in the sense that it is stable, its only advantage is to avoid our sanctions and other laws.”
The United States remains vigilant about Russia’s use of cryptocurrencies. Yellen said that The Treasury is closely monitoring this situation.fearing that the growing adoption of cryptocurrencies could reduce the effectiveness of sanctions.
The aim is to ensure that economic restrictions remain in place and effective, despite attempts to circumvent them.
Russia continues to explore cryptocurrencies Iran is a tool for circumventing Western sanctions, a strategy that could reshape the global economic landscape. The United States, well aware of this threat, is closely monitoring this development.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day the impacts will be felt on the most vulnerable economy in this World, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.