The Biden administration is slapping economicSanctionsRussia uses various crypto tools to keep foreign capital available to it in order to stop Russia from escalating the Ukraine crisis.
As Russia attacked Ukraine, cryptocurrency prices fell sharply. Bitcoin prices fell to over 8% on Thursday morning to close at $34,702.18, its lowest point in less than a month.
Ether dropped more than 8 percent to $2,407.47.
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That’s A Lot Of Money
According to economists, the U.S. sanctions could cost Russia $50 billion per year.
The Russian government appeared to be prepared for anything by connecting to financial networks that are open to working with them.
The other is the linking of digital currency businesses that do not have to be regulated by government and operate independently on Blockchains.
“Russia has had a lot of time to think about this specific consequence. It would be naïve to think that they haven’t gamed out exactly this scenario,” Michael Parker, a former federal prosecutor in an interview with the New York Times, said.
Source: TradingView.com| Source: TradingView.com
Instead of imposing sanctions, use cryptocurrency tools
Many Western countries use economic sanctions to suppress wars and crises.
During the Russian invasion of Crimea, the United States restricted its banks from dealing business with Russian oil, ghas and financial institutions, the latter’s economy was badly impacted.
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Although the US has the right to start, sanctions can only be effective if the financial system is global.
The international banks oversee the money flow and have been tasked to block transactions from sanctioned countries.
However, this is impossible as Russia is preparing to launch its own initiative. Central bank to manage the digital Rubble. The goal is to be able to do business directly with other countries, without the need to use American currency.
Unter dem Radar
Russia developed a new technology that could hide transactions from any third party investigators to cover up their blockchain-based activities.
North Korea has made similar moves, using the same technique. cryptocurrenciesAccording to Reuters, it will be used to finance its ballistic and nuclear missile programs.
Also, cryptography was reported as a source of money for Iran. MiningTo make up its revenue losses due to the inability to sell oil as a result of sanctions.
Russian Blockchain Empire
Russia’s current situation is Growing a blockchain and ransomware industry.
According to A.I., Russian entities earned 74% of global total income last year. They also received more than $400 millions worth of cryptocurrency. Report February 14Chainalysis, a blockchain tracking firm.
Bitcoin prices dropped to $35,000 after Russian President Vladimir Putin announced that a military operation would be conducted in Donbas. That is an increase of over 8% from the previous day.
Bitcoin traded as high as $34,969 at 1:22 a.m. Eastern Time. CoinMarketCap.
Featured image taken from Reddit. Chart taken from TradingView.com