European Central Bank President Christine Lagarde reiterated the warning that Russian money holders and Russian companies are using digital currencies to circumvent sanctions.
Despite the low trading volume against the Russian ruble of only $7.4 million compared to the peak trading volume of $70 million on March 7 according to information provided by Chainalysis.
This drop does not affect the trading volume of cryptocurrencies, since the trading volume of the leading coin, Bitcoin, is between 20 and 40 billion dollars per day.
Christine Lagarde made her statement last Tuesday in a presentation to the bank, saying that “authorities have noted large volumes, considered from the top since 2021, of the Russian ruble fixed in digital currencies without any movement of the same for a while.”
The president of the European Central Bank has not made any direct accusations against the Russian government or anyone else, but insists on confirming the attempts of the Russians to circumvent economic sanctions through the use of digital currencies.
But he stressed that cryptocurrencies are “definitely being used as a way of trying to circumvent sanctions.”
Crypto trading in rubles falls.
European Central Bank President Christine Lagarde has reiterated warnings that Russian individuals and companies are using cryptocurrencies to circumvent sanctions. https://t.co/qsCH2QICTP
— Cointelegraph (@Cointelegraph) March 24, 2022
When Lagarde was asked about her vision of digital currencies, she emphasized that they are seen as a threat to the economy in the past and present, as digital currencies are present in many prevalent criminal activities.
Not everyone agreed with Lagarde, who makes accusations that contradict the data provided by Chainalysis and Kaiko, with Jack Chernovsky stating that cryptocurrencies are unlikely to be used as an escape from Russian economic sanctions.
Ruble trading volume on all cryptocurrency platforms
Data provided by cryptocurrency analytics firm Kaiko showed that the ruble’s trading volume against USDT has fallen 86% from its high of $38 million on March 7 to below $5 million on March 22. , as there was a pre-war uptick and others. Sharp spikes after that, but trading volumes are now back at lower levels than seen for most of early February before sanctions were imposed.
Cryptocurrency is helping Ukraine in the war
On the other hand, digital currencies play an important role in helping Ukrainian refugees escape the country, as CNBC spoke about the story of a Ukrainian refugee who used the pseudonym “Fadi” when he fled the war-torn country with $ 2,000 that he put. in Bitcoin in a cold wallet, which made it easy for her to access his money once he was safely in Poland.
Trying to withdraw money from Ukrainian banks in the weeks leading up to the invasion was very difficult, said Alex Gladstein, director of strategy at the Human Rights Foundation, highlighting the difficulties faced by refugees currently trying to access their money from foreign countries. like Poland. .
Donations to Ukraine via cryptocurrencies have also increased in the last three months, with total daily donations to Ukraine reaching $100.9 million so far, according to data provided by Merkel Science.