• Russian banking could resume operations with its CBDC.
• Russia will launch its stable coin but without the Blockchain network.
As a response to the sanctions imposed on Russian banking, the country may reduce the problem by using any viable alternative. Economic experts suggest that Russian could use crypto to escape these penalties. After observing the panorama where the country faces the OTAN and the United States, this idea is credible.
Former US Attorney Michael Parker recently said that RF had a lot of options to escape sanctions from Washington. Parker specializes as an AML agent, the US firm where money laundering is fought.
Avoid transactions in US dollars
Sanctions are the best way for the United States to show power because the US dollar is the most stable currency in the world. However, the American authority recognizes that the crypto trade could affect the dollar power worldwide, and RF knows it.
Washington sanctions plan is anchored to a comprehensive financing scheme. Entities locate fund transactions and apply various laws to prevent money laundering from the country. However, with the crypto market rise, the problems of tracking funds and penalties could be avoided.
The banking authority must adapt to the KYC regulations in which the client is asked to identify himself with his name and real ID. However, crypto exchanges and wallets are very flexible with the laws that prioritize public banking.
Russia could be closer to crypto than you think
Although RF has not been as deeply involved in the crypto industry, it may reconsider its position with its latest measures. Russian economists try to avoid US penalties at all costs, so Moscow is not destabilized.
According to reports, RF would be creating its own CBDC called “virtual ruble.” This currency created by the Russian bank will allow national agencies to use it and thus avoid the US dollar.
Crypto operations leave records on the Blockchain network, which shows a transparent system. However, Russian technology promises to eliminate this transparency to prevent its enemies from knowing where the funds are going. In 2020, Russian banks announced that the CBDC would eliminate the ruble dependence on the US dollar.
As RF’s issues with Ukraine, OTAN, and the United States unfold, no one will know exactly what the country will do with the crypto market. So far, reports that the country embraced crypto are speculative.