One could argue that Russian soldiers’ onslaught on Ukraine is poorly coordinated. This is because world leaders continue to impose sanctions on Russia’s important persons and institutions.
The term “attack” associates with Bitcoin. This signifies that a group of miners controls more than half of the network’s mining hash rate in blockchain.
One of the most recent penalties is to restrict Russian banks from participating in the Society for Worldwide Interbank Financial Telecommunications (SWIFT). The European Commission’s leaders issued a unified statement announcing the action. France, Germany, Italy, the United Kingdom, Canada, and the United States are all part of it.
SWIFT is an intercontinental payment network that facilitates cross-border payment settlements. It is still a well-regulated and trusted method of transferring funds for international trade and important remittances.
Russia’s Consequence
Following Russia’s invasion of Ukraine, the aforementioned leaders have decided to shut Russia off from these networks. They intend to put economic pressure on Vladimir Putin’s forces, forcing them to end their enmity.
In a statement, they stated that they support the Ukrainian government. They also support the people of Ukraine in their valiant attempts to repel Russia’s invasion. Russia’s war is a direct challenge to international norms and rules. It has been in place since World War II, and they are determined to fighting it. They will keep Russia accountable and work together to ensure that Putin’s war is a strategic disaster.
Aside from cutting ties with SWIFT, world leaders pledged to enact stringent measures. It will restrict the Russian Central Bank from using its international reserves in ways that weaken the sanctions’ impact.
Solace in Digital Currencies
There appears to be a global community opposing Russia. The question is whether the country would find comfort in adopting digital currency as a means of circumventing the sanctions.
The Russian Central Bank has been a driving force behind the prohibition on digital currencies. There is a move that is comparable to the People’s Bank of China’s campaign last year. This was when the People’s Bank of China (PBOC), China’s central bank, declared all cryptocurrency transactions to be unlawful.
All crypto-related transactions, they claim, are illegal financial activity. Bitcoin, Ether, Tether, and other virtual currencies do not have the same legal standing as legal money. They are not legitimately repayable and should not be traded in the market as circulating currencies.
Earlier this year, there was a push to outlaw Bitcoin. The apex bank’s position could be rescinded very soon as a result of the ongoing economic severance. These fledgling asset classes could be one of the most accessible ways for Russians to trade with the rest of the world.
