Despite the increasing economic sanctions against Russia the number of cryptocurrency purchases using Rubles on several large cryptocurrency exchanges has fallen dramatically.
The data of blockchain-data aggregators shows that Russian cryptocurrency collateralization trading across large crypto exchanges is declining. This discredits Russia’s claim that it will use crypto assets to maneuver sanctions.
Some cryptocurrency pundits claimed that Bitcoin’s price spiked by more than 15% last week because of Russians purchasing the crypto assets and growing economic sanctions.
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Chainalysis also displayed data that revealed cryptocurrency trading in ruble denominations, contradicting this belief. On Thursday it fell to $34.1 million, an approximate 50% drop from the $70.7 million that was reached last Tuesday (February 24).
Citigroup Analyst comments on the Cryptocurrency Situation
Bloomberg asked me to comment on the subject of crypto-buying that is not restricted by sanctions. Alexander Saunders-Citigroup analysts responded that recent trading volumes were relatively small. He also suggested that the PA may be higher due to traders and investors anticipating a growing demand from Russia, rather than Russia demanding it.
Regardless of pundits’ debunking, cryptocurrency could be essential to aid Russia in circumventing sanctions. Unfortunately, both the US and EU are continuing to push for regulatory approvals of cryptocurrency.
NY recently increased its capabilities for monitoring blockchain transactions to deter digital currencies being used by Russians.
New York Governor Defends Russian Collaborations with The State
Kathy Hochul, New York’s governor, issued an executive directive on February 27 directing agencies to stop all relations with Russian entities, institutions, and any entity or body that provides them aid.
In her statement, she highlighted that New York is home to the country’s largest Ukrainian population. They will utilize all available technology to ensure her safety and show Russia that they will be held responsible.
The Blockchain Associations’ Head of Policy in the United States – Jake Chervinsky, described their worries as “totally unfounded. His tweetHe explained his point of view on the situation.
He stated that Russia can’t and won’t be able to utilize cryptocurrencies to evade economic sanctions. Chervinsky emphasized that the fears are misunderstood: How sanctions work, what cryptocurrency markets do, and how Putin intends to reduce sanctions.
Ari Redbord from TRM Labs was also a Head of Legal and Government Affairs. He suggested that this viewpoint should be strengthened. He explained that currently, it’s too later for Russia to use cryptocurrencies to handle its sanctions.
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Also, he added that cryptocurrencies’ and blockchains’ transparent nature would make it possible for the entire public to monitor transactions and notice individuals or entities trying to maneuver sanctions.
Featured Image from Pixabay. Chart by TradingView.com