While Western officials are seeking to ban Russian officials and citizens from accessing digital currencies to prevent sanctions from being circumvented, the country’s central bank has kept it a secret that digital currencies should be banned in Russia; But why did the Russians take the initiative to ban digital currencies in such a critical situation?
According to the Kevin Telegraph, the Ukrainian government recently called for a “freeze” on the digital assets of ordinary Russian citizens due to the ongoing war between the two countries. Europe’s allies, Ukraine, also have growing concerns about Russia’s use of digital currencies to circumvent Western sanctions.
However, one of the biggest advocates of banning ordinary Russian citizens and their financial institutions from accessing digital currencies seems to be the Central Bank of Russia (CBR) itself. As the local news agency “tass.ru” reported on Thursday, the Central Bank of Russia continues to adhere to its position to ban the supply, extraction and circulation of digital currencies in the country.
A representative of the Russian Central Bank said:
The central bank is already supporting the position it previously announced on its official website. So there is nothing new to say about it.
During war, nations often have to drastically increase their spending, and they often do so by printing new money to cover their military expenses. However, this is leading to high inflation and thus encouraging citizens to exchange the country’s official currency for foreign currencies, including current digital currencies, to protect their savings.
This, in turn, puts strong pressure on the sale of the national currency, raises exchange rates and disrupts the government’s efforts to finance the war. As a result, as Russia and Ukraine have done in the past, countries often enforce strict currency laws during war. Thus, the use of digital currencies, which destabilizes the ruble and in some way hinders Russia’s efforts to finance the war, is a major disadvantage of the benefits of avoiding sanctions.
According to a report last week by Arcane Research, the daily volume of Tetra-Ruble transactions on the Bainance exchange peaked at $ 35 million. Russian social media users seem to be deeply concerned about the devaluation of the ruble and how to use digital currencies to protect their savings.
A user named Roman Buchin wrote in his account:
You have to do something [مانند ارز دیجیتال] Buys; Soon the ruble will cost less than toilet paper.
The publication Despite excessive sanctions, the Russian Central Bank is still seeking to ban digital currencies appeared for the first time in the digital currency.