During the last few months, the government of Russia has planned to proceed to implement cryptocurrency-friendly laws in the region. According to the experts, the notion of the Russian government taking an increasing interest in the cryptocurrency industry is not a mere coincidence. The Russian President, Vladimir Putin, is planning to dodge the western sanctions from the USA with digital assets.
The latest updates indicate that Russia has already started a military expedition in Ukraine. As a result, it is inevitable for Russia to face strict financial and economic sanctions from USA and NATO countries. However, a strong cryptocurrency infrastructure already standing in Russia will help the country to escape some of the financial ramifications of its actions.
Crypto Mining in Russia
Following the cryptocurrency exodus in China last year, a great number of cryptocurrency miners moved their operations to Russia. The main reason behind the excursion was the cold weather and crypto-friendly legislation in the country. At present, Russia is responsible for contributing the third-largest hashrate supply to Bitcoin.
Enticing Russian authorities to take action, POTUS implemented financial sanctions on the country last Monday. By blocking transactions and property of several people of interest, the USA tried to persuade Russia to stop military expedition in Ukraine which only had an inverse effect as Russian forces moved into Ukraine the same week. NY Times article suggested that the Russian government now owns and operates enough cryptocurrency ammo to neutralize any US or NATO restrictions.
Bitcoin may Help Russia’s Annexation of Ukraine
Stacey Herbert, the host of the Orange pill Bitcoin podcast recently claimed that at present Bitcoin has gained a critical priority status in Russia. She proceeded to dismiss the notion that Bitcoin will help Russia in carrying out the forced annexation of Ukraine under the banner of the Soviet Union. She claimed that Bitcoiners are taking up neither a negative nor positive stance on the matter.
On the contrary, the reports published by the Center for a New American Security postulate that with a massive amount of digital asset arsenal at its disposal, Russia can bypass the financial and trade sanctions issued by the USA government.