What if the world kicks a country out of the world monitory system and imposes enormous economic sanctions ?
The desired effect would be inflation, currency stability and all kinds of financial and economical challenges for its populous and its businesses.
Well this is exactly what Russia is facing post its invasion of Ukraine.
No country can survive long with financial isolation and Russia is no exception.
Is Crypto Russia's plan to get back into the economic system?
As per sources of Interfax news agency which has quoted that Russia is mulling "The idea of using Digital currencies for International settlements"
This is from Ivan Chebeskov, head of the finance ministry's financial policy department."
Historically governments including Russia have toiled with the idea of regulating the crypto markets.
Now with the current sanctions in place is it time for them to open the gates to crypto?
These discussions have been ongoing for some time
The Finance ministry has been discussing a proposal on international payments.
This piece of information has been reported in the Russian newspaper Vedomosti on Friday.
The source of this information is cited to be officials in the Russian Govt.
This attempt if successful could help Russia mitigate the effect of the sanctions being imposed by the west post the Russia Ukraine war.
It is practically impossible to block crypto
Truth be told no govt. can regulate crypto beyond a point.
Due to the decentralized nature of cryptro networks not only can money be transferred across borders with zero govt. intervention but also at a fraction of cost and in the minimum of time.
The use of Digital Currencies is a generic term
Govt.s have been mulling for long with the idea of their own version of digital currencies.
So it is not clear if this news should be seen as a green light for crypto's or is it only for some govt. backed and controlled crypto.
Though BTC, ETH and other crypto's are Govt neutral and would surely find more and ready acceptance then a Russia owned and controlled coin which may be seen with suspicion by other partners.
Thus the balance may tilt for getting the BTC, ETH and other main stream crypto's a go ahead.
The effect of Opening the Crypto Gates on the world
If this were to happen then surly large amount of crypto purchases would be made by the governments around the world.
not only would it mean making payments using crypto but also countries would like to maintain crypto reserves just like they maintain gold and USD reserves.
It is not hard to see that such a use case would give a shot in the arm to the current sluggish crypto markets.
how would it affect situation in Ukraine
This could be a double edged sword. For one it would put more finacial power in the hands of Russia.
However at the same time a boosted crypto ecosystem could also help mobilize more crypto to support groups in Ukraine.
If BTC, ETH and the top crypto starts performing well it would take the altcoin market up as well.
People in Ukraine and other parts of the world who have been greatly hurt and have seen their life savings been wiped out due to the Terra Luna crash could see the rest of their portfolios getting into a healthy green territory.
ref. source : https://www.reuters.com/markets/currencies/russia-mulls-allowing-cryptocurrency-international-payments-ifax-2022-05-27/
Hopefully this war disaster will result in something good for the world
I guess the silver lining to the dark clouds of disaster