Many people have wondered whether cryptocurrencies may help Russia after the sanctions were implemented. While some suggest that they can act as a counter-measure to the sanctions, others think that it will be ineffective because ruble trades are uncommon and the sanctions do not completely isolate Russia.
Then, According to David Carlisle, the director of Policy and Regulatory Affairs at blockchain analytics firm Elliptic. So, Russia’s next move to dodge sanctions could be mining:
“It wouldn’t be a stretch for the Russian government or certain sanctioned entities”
” to look to mining as a way to get access to Bitcoin.”
“They could be translated to goods and services or just hard cash.”
Despite the fact that the Bank of Russia expressed their opinion by proposing a ban on mining and trade. So, it is well known that President Putin opposes crypto mining and supports it. So, Would Bitcoin mining, given Russia’s energy resources, be a simple way to get over the sanctions?
Many countries have already continued to invest in mining. According to the Cambridge University Center for Alternative Finance, Russia is second in Bitcoin mining behind the United States and Kazakhstan, accounting for 11.23 percent of all Bitcoins. Notably, The top eight countries are as follows:
The USA with 35.4%
Kazakhstan with 18.1%
Russia with 11.23%
Canada with 9.55%
Ireland with 4.68%
Malaysia with 4.59%
Germany with 4.48%
Iran with 3.11%
So, According to Bloomberg, boosting Russia’s already existing mining capacity will not help the country’s resilience to the sanctions.
Despite its abundant energy resources, the Russian financial market and economy are too large for the country to produce enough Bitcoins to make a significant financial difference.
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