Russia could use cryptocurrency to avoid Western sanctions
Complications would involve trying to turn the cryptocurrency back into a regular currency in order to spend it
Ukraine National Bank suspends most foreign exchange transactions
Former IMF chief economist Kenneth Rogoff discusses the Central Bank of Poland reportedly offering $1 billion to Ukraine National Bank to help international reserves and the impact Russia's invasion in Ukraine will have on the U.S. economy.
Cryptocurrencies may play a major role in the war between Russia and Ukraine.
Russia could reportedly use crypto to evade Western sanctions, according to NPR.
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The sanctions announced by President Biden target Russian financials institutions, especially two of the country's largest banks.
That hits nearly 80% of the banking assets in Russia, according to Treasury officials.
To get around those sanctions, Russian banks and oligarchs could put money into Bitcoin and other cryptocurrencies.
MILLIONS IN CRYPTO DONATIONS FOR UKRAINIAN MILITARY POUR IN
Lawyers say going that route still has complications, especially when trying to turn the cryptocurrency back into a regular currency in order to spend it.
President Joe Biden delivers remarks on developments in Ukraine and Russia, and announces sanctions against Russia, from the East Room of the White House Feb. 22, 2022 in Washington, D.C. (Photo by Drew Angerer/Getty Images / Getty Images)
Business partners would also have to agree to accept digital currency for payments.
At best, experts see it as a short-term solution.
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Coinbase, the largest U.S. crypto exchange, said it is blocking IP addresses in areas affected by Western sanctions and working alongside authorities to ensure the sanctions are enforced, according to a statement to NPR.