War between Russia and Ukraine seems to be fought at every aspect possible, be it economic, strategic, or any beyond the war fields
On February 24, Russia initiated a military operation in Ukraine, which was a full-fledged war between Russia and Ukraine. Economic and financial markets of countries get affected first and most during the war. Both Russia and Ukraine face similar situations, but Russia is on the verge of worse conditions.
To strike weakening financial conditions of Russia, it seems like Ukraine opened up war on the economic front. Ukraine called out for the sabotage of the crypto assets of Russian individuals by freezing or seizing them. Many European allies have also supported and raised their voices in Ukraine, presenting the concerns that Russia might find a solution to bypass Western sanctions using crypto.
Surprisingly, one of the strong allies who could help Ukraine beat Russia on crypto firms was found in the form of the Central Bank of Russia itself.
Lately, even before the Russia-Ukraine war broke out, the Central Bank of Russia or CBR made a statement against cryptocurrencies. It proposed a ban on all its operations inside the country. As a local news agency reported, it seems like CBR is still sticking to its point.
According to the report, an official at the Central Bank of Russia said that the Central bank still supports the position it was before announced and even published on its official website. Hence nothing to add more to it for now.
The statement from the bank official shows the announcement that the Central Bank of Russia made regarding the crypto ban and specifically banned on issuance, circulation, and mining of cryptocurrencies in the entire Russian Federation.
War times drastically increase countries’ spending majorly to finance their military operations. Financial authorities even started printing more money to bring cash flow and liquidity into the system. But it increased inflation simultaneously, and to tackle such a situation, individuals began putting their money in foreign currencies and investments to protect their savings.
Despite being one of the top economies in the world, Russia is likely to face harsh punitive sanctions from other European and western countries. Although the technology collaborated with the economy, it turned out that shifting finances and assets in digital and decentralized forms could have resulted in somewhat comfort for the Russian economy.
But efforts of Ukraine and other countries in countering Russia’s crypto movement and the Russian bank’s stance on the crypto ban can result in uncomfortable situations for the country.
ALSO READ: Ukraine Currently Accepts Dogecoin Contributions And Appeals To Elon Musk For Further Help
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/03/05/__trashed-39/