In the times of war between Russia and Ukraine, it has been found that crypto is playing a crucial role in helping Ukraine. Ukraine has received a lot of crypto donations globally to help support its war-affected economy and its army. However, on the other hand, experts also believed that Russia too would benefit by using crypto to evade the global sanctions put on them by countries opposing the war. But this seems not to be the case as the US Treasury Secretary, Janet Yellen stated in a press conference that there has been no such proof found regarding Russia using any crypto loopholes to get by the global economic sanctions placed on it.

Why did the people think that Russia would evade sanctions via crypto?

Well, the answer is pretty straightforward, crypto is anonymous, hard to track and especially it doesn’t depend on the traditional banking system, whereas the world is clamping down on Russia by ousting it from the traditional financial network by putting economic blockades on it.

Hence, experts believed that the only way for Russia to avoid all these barricades is to turn to crypto and mainly use underground crypto exchanges (non- KYC compliment) or decentralised platforms to transfer its funds for international services (like exports and imports) that are required to carry forward its essential businesses to keep its economy running during these war stress times.

Why hasn’t Russia done this?

Well, first of all, experts believe that Russia doesn’t exactly have the proper crypto infrastructure to suddenly rely upon and dive into it. Further, for this Russia would need to start transacting in billions and the major issue with this would be crypto liquidity. Even if, Russia can get by this it wouldn’t work as a sudden rise in large amounts of crypto transactions like billions would easily attract the attention of public blockchain explorers and private analytical firms though crypto is anonymous or hard to track. Further, whatever you do but at the end of the day, for you to cash out such large sums, you got to rely on the traditional financial system which would also easily trigger some red flags.

The above views were also shared and pointed out by the US Treasury secretary, Janet Yellen in the press conference.

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I am an avid tech lover. I mainly write articles on technology & crypto-related topics.