The noose continues to tighten. Not only for the Ukrainian capital Kiev, but also for the Russian economy. Following the global sanctions against Russia, Russian banks are going bust. More and more voices are calling for the removal of Russian shares from the indices, as well as the ruble from the world currency system. Also, Germany is seizing the first mega-yachts from oligarchs. Could this point to an increase of using cryptocurrencies in Russia?
Russian Armored Cars With Daimler Participation
German firms have historically done good business with Russia. Until a few days ago, Daimler held a 15% stake in the Russian company Kamaz (KMAZ.ME). Among other things, Kamaz is well known for manufacturing armored cars that are now being used in Ukraine. But now leading business representatives of Germany are already talking about a complete shutdown of Russian business.
“You Can’t Do Business With This Regime Anymore”
Oliver Hermes, the chairman of the Committee on Eastern European Economic Relations, was one of the first to initiate a trend-setting debate now: “It is currently less about the sanctions and their consequences, but about the question of whether or not we will still have economic relations with Russia to any significant extent in the future.”
Siegfried Russwurm, the president of the Federation of German Industries (BDI), goes a step further: “Many responsible people have told me very clearly with regard to Russia: you can’t do business with this regime anymore.”
There has never been such a large-scale withdrawal from an economic partner as Russia in history. More and more foreign companies are announcing that they will abandon their branches in Russia.
Trading of Cryptocurrencies in Russia is on the Rise
Russia just can’t do without capital. Following the exclusion of quite a few Russian banks from the international payment system SWIFT, we can see increased trading of cryptocurrencies in Russia.
But if Russia wants to circumvent the sanctions with this, it has a problem. While transactions with bitcoin and similar coins are anonymous, they can still be tracked. Additionally, no economy has yet been able to switch completely to cryptocurrencies.
In conclusion, even if Putin wins the war against Ukraine, economically his country will emerge as a loser. In addition to an oil and gas embargo, I can imagine a future restriction on cryptocurrency trading.