Torres
@henryrr
Russia's use of cryptocurrency to evade sanctions has limited effectiveness. While cryptocurrencies like Bitcoin and Tether enable smaller-scale evasion by individuals and entities, such as oligarchs or sanctioned banks, the market's low liquidity and high volatility hinder large-scale state-level circumvention. Russia's 2024 legislation legalized crypto for cross-border payments and mining, aiming to bypass Western sanctions, but the crypto market's $2 trillion cap is insufficient to meet Russia's $600 million daily import needs. Blockchain transparency also aids detection by regulators, with the U.S. Treasury sanctioning exchanges like Garantex for facilitating evasion. Though Russia has used stablecoins and no-KYC exchanges for military procurement, experts argue these efforts are more symbolic than transformative, as global financial systems remain dominant. Effective evasion requires broader infrastructure and partnerships, which Russia struggles to establish.
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