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Ukraine finds unlikely ally in efforts to bar Russian access to crypto

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Due to the continued conflict between the two nations, Ukraine has called for “sabotage” of ordinary Russians’ crypto holdings. Many of Russia’s European partners are concerned that the country may utilise crypto to circumvent Western sanctions.

However, it appears that the Central Bank of Russia, or CBR, is one of the most vocal opponents of allowing ordinary Russians and financial institutions access to cryptocurrencies. The CBR has maintained its position of proposing a ban on the issuance, mining, and circulation of cryptocurrencies in the Russian Federation, according to local news outlet tass.ru on Thursday. According to a spokesperson at CBR:

“The Central Bank is currently supporting the previously announced and published position on its official website. As a result, there isn’t much new to report today.”

During times of war, countries often need to drastically boost their spending. Such as by printing additional money, in order to fund their military endeavours. However, as a result of this, individuals are enticed to convert their native currencies for foreign currencies (including, now, cryptocurrency) in order to secure their wealth.

During times of war, countries often impose stringent foreign exchange controls

However, this would put a lot of selling pressure on the local currency. Causing exchange rates to rise and hampering war-funding efforts. As a result, during times of war, countries often impose stringent foreign exchange controls, as Russia and Ukraine have done. As a result, the risks of crypto undermining the Ruble and, by extension, hurting Russia’s war operations may outweigh the advantages of utilising crypto to circumvent sanctions.

Daily Tether (USDT) to ruble trading volume on Binance reached an all-time high of $35 million, according to research published this week by Arcane Research. Members of the Russian social media community appear to be quite concerned about the ruble’s declining value. And how cryptocurrencies can help them secure their savings. Roman Buchyn, a user, stated:

“You should buy anything [cryptocurrencies] because the ruble will soon be cheaper than toilet paper.”

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