Kaja Kallas, the Estonian prime minister, warned US Secretary of State Antony Blinken that cryptocurrencies must be “limited” to prevent Russia from evading newly imposed sanctions. The comments by Prime Minister Kallas were made a day after the Financial Crimes Enforcement Network (FinCEN) advised financial institutions to be on the alert for Russian attempts to avoid sanctions, according to Reuters.
The remarks came as the Biden administration prepared to sign an executive order directing federal agencies to investigate the legal and economic ramifications of launching a central bank digital currency (CBDC).
In addition to asking for cryptocurrency limitations, Estonian Prime Minister Toomas Hendrik Ilves urged Blinken that all Russian and Belarusian banks should be withdrawn from the SWIFT communications system. Estonia’s Prime Minister is the latest in a long line of officials and organisations concerned about Russia’s use of cryptocurrencies to dodge sanctions imposed in response to its invasion of Ukraine.