International Monetary Fund believes that sanctions might have good intentions, but Russia is likely to avoid them; it could use bitcoin mining
In its new report, the International Monetary Fund put out a warning stating that countries like Russia are likely to use cryptocurrencies and digital assets and boost their crypto mining activities to pull up the mining industry to evade such economic sanctions imposed on them.
The IMF indicated in its report explaining global financial stability while outlining Russia that the country could plan to use cryptocurrency mining to get rid of economic sanctions that were imposed by several countries in the European Union and the United States following its military invasion of Ukraine.
The main takeaways from the meetings of the IMF are that the IMF has downgraded its growth outlook globally while reflecting it as an impact of the Russia-Ukraine war, the inflationary situations all around, and so much more.
According to the IMF, there are so many tools on which Russia could rely to move out its money from the traditional financial system. One prominent example of such could be using non-compliant crypto exchanges while maintaining a platform focused on enhancing anonymity like mixers or DEX.
On top of that, the global financial institution stressed that using cryptocurrencies focused on privacy, such as Monero (XMR), which could help while avoiding the transaction from being tracked, would make it easier for the government of Russia to reduce the ill effects of financial blockage. As per the stats, Russia has become one of the most sanctioned countries globally; it even surpassed North Korea with more than 400 different types of measures taken in against it. In such a scenario, the arguments put forth by the IMF that the government could also turn to crypto mining for monetization of their energy resources that cant is exported for now due to sanctions or exports ban.
For the IMF, cryptocurrency mining has remained a focal point for a very long time, along with other law enforcement agencies all around. The reason is such activities can turn out to be profitable in times while other economic activities would be facing bans or restrictions. For instance, those countries that used bitcoin mining facilities by setting them up to raise their crypto activities and create active crypto communities include Venezuela, North Korea, Iran, and now Russia.
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Source: https://www.thecoinrepublic.com/2022/04/20/imf-issues-warnings-russia-could-use-bitcoin-mining-to-bypass-the-sanctions/