Bitcoin Would Not Save Russia From Sanctions
Binance founder issues stern warning to Russia
The founder of Binance claims that cryptocurrency would not assist Russia in evading sanctions.
“Crypto is too little for Russia,” argues the CEO of a trading platform, adding that “more attention should be spent on the banking system.”
Growing worries that cryptocurrency and other digital assets may be used by the Russian government to dodge sanctions have been quashed by the founder of Binance, a cryptocurrency trading platform.
Changpeng Zhao said that cryptocurrency defeats the purpose of circumventing sanctions by being easily traceable on the blockchain, and that banks should be given greater attention.
Zhao said in a statement that traditional lenders and the oil and gas business should be the focus of the media and politics.
“At the moment, the media and lawmakers are concentrating their efforts and attention on crypto and sanctions,” he stated.”The fact is that cryptocurrency is too little for Russia.”
If we look at the current state of crypto acceptance, we may estimate that roughly 3% of the worldwide population has some form of crypto exposure (ie, owning some crypto).
Most of them have only a little portion of their net worth in cryptocurrency.
On average, it’s less than 10%. As a result, crypto accounts for less than 0.3 percent of global net value today. This proportion is applicable to both Russia and the United States.”
Recent reports from The Wall Street Journal indicate that the US is planning to sanction
Russia’s cryptocurrency sector, with fears that cryptocurrencies provide a different option carryout irreversible transactions outside of the international banking system.
Zhao denied this applied to Binance, saying it “applies the same sanctions rules as the banks, according to international standards”.
“Another reason Russia might avoid crypto is that it is too traceable. And governments all around the globe are quite good at tracking it,”
Zhao has sent humanitarian aid to Ukraine in the last few days. The billionaire who is valued at $1.9 billion (£1 billion) by Forbes magazine contributed $10 million to aid the humanitarian effort in Ukraine and assist individuals escaping the crisis
According to Zhao, crypto assets are “not an effective instrument for criminal activity” because of the usage of blockchain in cryptocurrency transactions.
A blockchain is a digital, decentralized ledger that is maintained by a network of computers and can be viewed by anyone.