Cryptocurrencies are a new way around sanctions in Russia

Cryptocurrencies are a new way around sanctions in Russia

The European Central Bank is concerned about the use of cryptocurrencies to avoid sanctions imposed on Russia as a result of the Ukraine conflict.

This was said by Christine Lagarde, President of the European Central Bank, in a statement: “I am particularly concerned about the vast number of rubles that have been converted into crypto assets since Russia was exposed to a series of financial sanctions during the war with Ukraine.”

Western sanctions included the exclusion of several Russian banks from the Swift system, thus cutting them off from the global banking system. The latest of these institutions, Credit Agricole, one of the major French banks, has ceased its operations in Russia.

As a result, the Russian people flock to buy cryptocurrencies that are traded outside the official banking system.

To counter the rise of “cryptocurrencies” and to respond to the increasing shift towards non-cash payments, the European Central Bank is considering creating a “digital euro,” and the central bank’s digital currency “CBDC” will be an electronic version of euro banknotes and coins, according to SKY News.

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