Cryptocurrency as a New Tool to Avoid Sanctions: Is Crypto the Leading Indicator for Stock Market?
The Move of Cryptocurrencies
Cryptocurrency Is a Potential New Tool for Billionaires to Avoid Sanctions
Cryptocurrencies may help Russia and its billionaires blunt the impact of western sanctions. Individuals and other entities targeted in the wake of Russia’s invasion of Ukraine may circumvent penalties if they choose to use crypto.
U.S. President Joe Biden said Thursday he has authorized “strong sanctions” in response to Russia’s invasion of Ukraine. These aim to limit its ability to do business in dollars and other major international currencies, and include penalties on five Russian banks that represent an estimated $1 trillion in assets. A broad swath of Russian elites and their family members will also be targeted. That’s all in addition to penalties that were imposed earlier this week.
But those sanctions might carry less weight in a country that is taking steps to legalize cryptocurrencies and where the digital assets are already widely owned. Typically, nations employ physical workarounds to avoid sanctions, but digital assets like crypto and decentralized exchanges could become the most effective way to circumvent penalties.
Sanctions imposed on companies and individuals by the U.S. and its allies could essentially close them out of the West. Billionaires, some of whom have already been targeted directly, potentially stand to circumvent those penalties if they choose to use crypto, which uses blockchain technology to keep transactions anonymous. The digital currencies might help them buy goods and services and invest in assets outside of Russia — all while avoiding banks or institutions that adhere to sanctions and could trace their transactions.
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The war in Ukraine has escalated to new levels of terror with the Russian forces put on Nuclear Deterrance Alert. It simply means that their nuclear arsenal is ready to fire should the need arise.
With new sanctions by the US and their allies, the Russian financial systems are in shambles. It is not surprising if Cryptocurrency is being used to bypass the normal source of monetary transactions.
Nonetheless Cryptocurrency is only 1 of the indicators not the Leading Indicator. The Macro Headwinds like interest rate rises and the progress of the war and peace talk will determine the market forces.
@MillionaireTiger Cryptocurrency
@TigerStars