Russia’s crypto legitimacy challenges some Western sanctions. Putin’s New Pro-Crypto Stance Expands Potential for Alternative Currencies Russia is positioning itself to overtake the US in crypto mining.
Russia’s recent crypto pivot will make it harder for the West to impose sanctions and reduce the country’s dependence on the US dollar.
That according to a Report According to crypto research firm Chinalysis, President Vladimir Putin signed two bills last month legalizing crypto for cross-border payments and allowing crypto mining in Russia — a move from 2022 when the Central Bank of Russia called for a complete ban.
The report highlighted Putin’s warning to “not miss the moment”, indicating Russia’s intention to reduce its dependence on the dollar, allowing it to develop economic sovereignty while allowing it to avoid some Western-led sanctions.
“These legislative changes are likely to increase Russia’s ability to participate in international trade through cryptocurrency,” Chinalysis said.
They lead to the use of alternative currencies, perhaps new stablecoins based on China’s yuan or BRICS currencies. Analysis, cited August 26 Bloomberg reportRussian crypto payment trials are noted to have begun this month.
The changes raise alarm among Western officials, especially with regard to Russia’s more important trading partners, including China and Iran.
Chinalysis said that while large-scale sanctions evasion is unlikely amid the limited liquidity of crypto markets and the transparency of blockchain technology, small-scale sanctions evasion on-chain still has meaningful implications for national security, compliance and investigations.
News In June, the EU reported Adopted 14th set of sanctions against Russia for invading Ukraine in 2022. European banks are banned from connecting to the Russian financial transfer system, and crypto platforms are banned from facilitating transactions for any companies or organizations that help Russia replenish its armaments and military. Technology.
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However, under its new pro-crypto laws, Chinalysis says, Russia “positions itself in an effort to overtake the United States as the global leader in cryptocurrency mining,” as well as creating challenges for Western authorities in classifying Russia’s crypto mining and exchanges. and adjusting sanctions to effectively target them.
Crypto market movers
Bitcoin is down 3.90% today at $54,185.80. Ethereum is down 5.02% today at $2,259.05.
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Bitcoin falls below $54,000 on weak US jobs data and Fed jumbo rate cut fears – NewsCrypto Won’t Displace Dollar: America’s Oldest Bank CEO – Yahoo FinanceWhy Bitcoin Miners Ignore This Cycle – The Street