Despite Janet Yellen’s and Hillary Clinton’s concerns, there isn’t enough cryptocurrency in the world to bail out Russia from its current economic quagmire. Even if there was a sufficient supply, the state would almost certainly be unable to avoid the scourge of a Western embargo.
David Carlisle, director of policy and regulatory affairs at Elliptic, stated:
“It’s important to remember that even if bad actors try to use crypto, because of its openness, law enforcement can track this behaviour, and crypto enterprises can employ tools like blockchain analytics to comply with sanctions requirements.”.
Despite Clinton’s concerns that the top cryptocurrency exchanges aren’t doing enough to close Russia’s hypothetical escape hatch, it’s unclear whether Russia’s political and business elite are seeking a bitcoin solution at all.
“Will Russia attempt to circumvent sanctions?” Yes, but not with cryptocurrencies, according to Matthew Le Merle, co-founder and managing partner of Blockchain Coinvestors. They’ll find other ways, such as the offshore entities and tax havens exposed in the 2016 Panama Papers, through the previously established (incumbent) global financial system.
Do you think Russia will be able to fight sanctions? Comment below.