Is Crypto the Future Money of Russia?
Is Crypto the Future Money of Russia?
Vladimir Putin and Oligarchs must be huge clients of Binance and Coinbase, etc...
Is Bitcoin Siding with Russia in a Crypto War?
Join my Poll on the subject.
As the Russian ruble tumbles and companies are are having a massive exodus moment from Russia, there is a contrarian in the room. Hello Binance and Coinbase! Which raises some ethical alarm bells and questions to me. It sends chills that Bitcoin and oligarchs are this well connected, but not exactly surprising.
Some of the world's biggest cryptocurrency exchanges are staying put in Russia, breaking ranks with mainstream finance in a decision that experts say weakens Western attempts to isolate Moscow following the invasion of Ukraine.
Western sanctions, which aim to squeeze Russia's economy and sever it from the global financial system, have forced companies and financial firms in their droves to halt business in the country.
Does Crypto Want to Rescue Russia?
Several US and European companies have suspended or ended commercial activity in the country. So why not crypto? A real lack of action in the Bitcoin community over this.
I find this astonishing. What is the point or inflation hitting the Rubble if crypto becomes the great rescuer of Putin’s plans?
Outrage over Russia's brutal invasion of Ukraine has prompted foreign companies to drastically rethink their commercial relationship with the country. Even Oil giants plan to leave Russia. But no not crypto, that’s just too much to ask for Binance or Coinbase, who can certainly afford to do so and take a stand with the rest of the world!
The price of rubles quoted in Moscow and in international markets have become disconnected and underscore how trading is being upended as investors rush to sell. The Moscow exchange remains closed. Some Russian banks show signs that they might completely fail. Does Bitcoin see this as an opportunity? Those idealists really aren’t profiteers are they?
Meanwhile the rest of society is up in arms about Russia’s invasion of the Ukraine in early March, 2022. Shockingly the business community and corporate culture is taking immediate action.
Energy giant Shell joined BP in pulling investments out of Russian energy companies. Automakers including Daimler Truck and General Motors have suspended business with the country, and Hollywood studios have canceled movie releases. Pension funds are weighing calls to divest from Russian assets, and some liquor stores are even boycotting Russian vodka.
So why not huge Titans of Crypto Exchanges like Coinbase and Binance? Even Apple, Facebook and Google have pulled out or frozen temporarily their services like Advertising and Apple Pay.
Changpeng Zhao, founder of Binance, says exchanges will comply with curbs on individuals, but rejects blanket ban. This even as the Russian central bank is sanctioned and penalized. What is the point of blocking SWIFT for Russian banks of Bitcoin and crypto comes to the rescue? Even if it were a mature enough product to do so, it raises some questions. This isn’t censorship or politics, this is the potential for World War 3 we are talking about.
Someone is manipulating the price of Bitcoin amid the crisis clearly. While some have touted crypto as one way for Russia to circumvent sanctions, others say that idea is “misguided.” Ruble-denominated volume for the stablecoin Tether is more than twice as high as bitcoin volume, according to Kaiko. Bitcoin’s price is back to $43,000 USD.
I can understand funding Ukraine’s resistance efforts with crypto, that’s kind of cool. But funding Russia’s invasion and profiteering both ways? That’s really disappointing by a so-called idealistic young solution to the future of money. It really pisses me off.
Many have suggested Russia could use bitcoin, which is not owned or issued by a single authority like a central bank, to evade sanctions. Veteran investor Mark Mobius said that could be one reason behind bitcoin’s rise.
If companies like Binance, Coinbase and the people behind Bitcoin’s rise can manipulate the price this easily, we should really be worried. Something fishy is going on. Bitcoin’s rally began after the U.S. imposed further sanctions on Russia over the weekend targeting its central bank, on top of existing sanctions aimed at oligarchs and Russia’s sovereign debt to sever the country from the global financial system.
What is the point of all of these sanctions if it just enobles crypto and Bitcoin to fund Oligarchs and a corrupt War that Putin calls a special military operation? Even China is now calling the invasion a War.
It is not the place for cryptocurrency exchanges to block transactions by Russian users, the founder of one of the largest trading platforms has said, amid concern that digital currencies will be used to bypass sanctions. I wonder what Coinbase’s arrogant CEO and gloating company ethics think about this. Coinbase is among the most arrogant startups I’ve ever witnessed in the history of innovation.
I really do think Bitcoin imperialists are a bunch of profiteers. I’m not naive enough to actually think they are sticking to their principles here.
From Jack Dorsey to Brian Armstrong, I know the look and feel of people consumed and utterly transfixed with $ dollar signs in their eyes and soul. The most dystopian of Tycoons betting big on a popular cult. Crypto yes? So why help Russia just because your business can profit from it? Why support Putin?
Is Russia a Crypto Conflict?
One financial expert warned the war could become a "crypto conflict".
In a tweet sent on Sunday Ukraine's Deputy Prime Minster Mykhailo Fedorov asked major crypto-currency exchanges to block the addresses of ordinary Russian users, not just politicians.
Bring it on, Bitcoin wars. You want to support Tyranny, let’s show you what the spirit of Ukraine can do.
The value of Bitcoin has risen 13% since the Russian invasion of Ukraine, according to the Reuters news agency.
Clearly there are powers at work that we don’t exactly understand. Is Bitcoin the Russian Hedge against the World? That would be a pity, hero to zero my friends.
At that point it would depend on Europe and the U.S. to pressure the biggest exchanges — Coinbase, FTX and Binance — to blacklist the addresses associated with Russia, and then no other major exchange would want to interact with funds that originated from those addresses. But scarily these businesses likely see Russia as a use case for their business model, not as an ethical issue.
What happens to your reputation though if you put Business and Crypto principles above the threat of tyranny and war? That’s super weird and very lame.
I guess Putin and his Oligarch buddies must hold a lot of crypto. That’s the only valid conclusion here.