Since the start of the war against Ukraine, the Russian financial sector has been in survival mode. This follows the numerous sanctions taken by Western countries against the Russian economy. But Russia is not letting it go. Recently, she planned to invest in crypto in order to escape these sanctions. Many agree that this is a wise outcome and that the cryptoruble project has every chance of succeeding. But lately, experts are expressing doubts about the effectiveness of such a solution.
International crypto payments to evade sanctions
To avoid its economic collapse, Russia is thinking of investing more in crypto. Some time ago, in fact, Russia announced the establishment of a cross-border settlement mechanism with cryptoassets. The goal: to circumvent the economic and commercial pressure inflicted by the West.
According Coindesk, the adoption of regulations for the issuance and circulation of cryptoroubles is underway. The same is true for other cryptographic operations. At first glance, everything seems to indicate that this is the ideal solution. The thing is, cryptoassets (like bitcoin) operate on a decentralized network. In other words, no central entity can control transactions and prevent user access.
Cryptocurrency in Russia: Experts have serious doubts
Admittedly, cryptocurrencies operate on a decentralized network. But as many specialists affirm, they cannot derogate from regulatory pressure. If we rely on the opinion of Maria Stankevich, director of development at Exmo, the introduction of a crypto payment system to circumvent sanctions is just an illusion. This expert claims that it is impossible to hide large transaction volumes even with cryptocurrencies. The reason is simple: tracking crypto transactions turns out to be more complicated than tracking bank transfers. This means that anyone who agrees to make transactions also risks being subject to sanctions.
Michael Zhuzhzhalov, another expert, confirms that institutional players (i.e. crypto exchanges, peer-to-peer platforms and issuers of digital assets) are not immune to regulatory pressure . Admittedly, the circulation of cryptocurrencies is not regulated. But this does not in any way mean that the transactions are not subject to rigorous control.
Using cryptocurrency to get out of the crisis caused by Western sanctions is an interesting solution that Russia wants to try again. However, this is a far from flawless idea given that the West has already prepared for this eventuality. Despite the fact that crypto works through a decentralized system, it is also a payment system that is not difficult to follow.
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