E-currency

Russia may bypass sanctions with cryptocurrency

Russia may bypass sanctions with cryptocurrency

The economic sanctions imposed on Russia, especially those that cut it off from the financial markets, are so painful for it that, according to analysts, it will now try to look for alternative solutions, such as launching its crypto assets and accessing various types of virtual currencies and electronic tokens.

The game may then include, for example, Bitcoin or one of the so-called digital stablecoins such as stablecoins, pegged to the standard US dollar exchange rate such as Tether. It is also possible that wealthy Russians will invest their savings in non-fungible NFT digital tokens. This could also be a solution that will allow them to reduce the effects of sanctions, the most serious of which is the fact that Russian banks are cut off from the Swift system.

There has been a lot of talk lately about SWIFT. According to experts, there are ways to manipulate SWIFT transactions in such a way as to disguise money transfers in such a way that it is impossible to determine if any of the entities are not subject to sanctions. The fact is that SWIFT is a rather old system, which was designed several decades ago. Therefore, it does not support all the control and security mechanisms that are usually supported by newer systems of this type. The problem is that SWIFT does not really authenticate the transaction.

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Therefore, specialists see an urgent need to develop financial software based on artificial intelligence that analyzes transactions in depth, and is not limited only to identifying senders and recipients. Moreover, it must be remembered that there are countries using the SWIFT system that sympathize with Russia and may act as intermediaries in converting their national currency, the ruble.

Coinbase, the largest US cryptocurrency exchange, recently announced that it does not intend to cut off Russian customers, but will ban any business that involves sanctioned individuals or entities. Many other exchanges of this type (including Binance) have publicly stated that they will not ban all Russian users or their IP addresses, but will limit themselves to blocking sanctioned entities.

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