As tensions flare in the complex “Cold War 2.0” between the United States and Russia, Bitcoin is now seeming getting caught in the crossfire. That’s because Bitcoin is now being recommended at the highest levels of the Russian government as a means to evade Western sanctions — a reality that will surely cause some sort of knee-jerk reaction in the United States’ political arena.
America had originally levied the sanctions against Russia in 2014 in combination with other countries in response to Russia’s military interventions in the Ukrainian crisis.
The sanctions have been particularly crushing against Russia’s lifeline oil and gas industries ever since, leading Russian president Vladimir Putin and other top Russian officials to consider their options.
Now, Sergei Glazyev — an economic adviser to Putin — is unabashedly asserting Bitcoin as the solution.
Bitcoin is becoming the Russian’s currency of choice to evade Magnitsky sanctions. You can read my Helsinki Commission hearing testimony in this story. https://t.co/rPqgz91yZB
— Bill Browder (@Billbrowder) December 14, 2017
That’s because in a new meeting with members of Putin’s administration, Glazyev declared Bitcoin as an optimal vessel for Russian banks to bypass Western sanctions and for transactions pertaining to “sensitive” national activities.
It’s a revelation that’s sure to have the eyes twitching of U.S. Congress members.
Glazyev’s comments come at a time when a Special Counsel investigation is looking into possible collusion between President Trump and President Putin’s administrations during the 2016 U.S. presidential election — an investigation that has both political relations in America and diplomatic U.S.-Russo relations on edge.
As such, Glazyev’s official pleas to use BTC to thwart economic sanctions is ripe for engendering an over-aggressive reaction in the American political arena.
Already naive and skittish American regulators may look at Bitcoin with renewed disdain in knowing that Vladimir Putin could be using them to flout international law.
Hopefully, cooler heads will prevail. In all regards.
TLDR: A top aide to Vladimir Putin remarked at a presidential meeting on the “objective need” for cryptocurrencies to bypass Western sanctions.