The move comes shortly after major Russian banks were removed from the SWIFT interbank payments system. Will Russia turn to Bitcoin?
Payment giants and renowned credit card issuers, Visa y Mastercard have blocked Russian financial institutions from their networks in response to the latest sanctions imposed against the country.
The United States, Canada and allies in Europe have been imposing a series of economic sanctions on Russia and several of its top officials after Russian troops invaded Ukraine last week. Among the measures to isolate the country from the global financial system, the nations have included major Russian banks, as well as several top officials, among their sanctions lists.
The actions restrict financial institutions and citizens of the U.S. and all other allied nations from doing business or transacting with entities on the list. Mastercard y Visa announced this week that they are acting in accordance with the orders.
Visa and Mastercard abide by Russia sanctions
As reported by CNBC , Mastercard said Monday that he had “ blocked several financial institutions ” of its payment network, without naming companies or individuals. The company added:
We will continue to work with regulators in the days ahead to fully meet our compliance obligations as they evolve. .
His main rival, Visa The company has also reported that it is complying with the restrictive measures to block the entities on the list. “ [We are] taking immediate action to garantizar el cumplimiento de las sanciones aplicables and is prepared to comply with any additional sanctions that may be implemented “, the firm announced Tuesday.
According to the report, both payment companies also reported their commitment to contribute USD $2 million (each) to humanitarian relief funds for Ukraine.
The news comes just days after the European Union, United Kingdom, Canada and the U.S. agreed to blocking a number of Russian banks from the SWIFT interbank payments network a network refers to all nodes in the operation of a blockchain at any given moment in time. . Countries have also implemented sanctions Russian President Vladimir Putin in an attempt to limit his access to capital capital is most commonly defined as the large sum of money you would use to invest. and prevent further funds from being diverted to finance the war against Ukraine.
Cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. Exchanges Also Respond
Visa y Mastercard son parte de las empresas que han estado tomando medidas activamente para cortar lazos con Moscú en medio de la creciente lista de sanciones.
Cross-border payment companies Wise yRemitly have suspended their money transfer services in Russia. Also large European energy companies BP , Shell y Equinor anunciaron on Monday plans to end to joint ventures in the country, as covered by the CNBC . At the same time, entertainment companies and sports organizations have also taken their own actions to condemn Russia’s aggression.
Cryptocurrency exchanges focused on the Russian market an area or arena, online or offline, in which commercial dealings are conducted. have also pursued actions to cut off local operations. As reported by TrustNodes the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. of digital assets Kuna has closed all pairs trading with the Russian ruble. The exchanges WhiteBIT y CEX.io announced the suspension of registrations for new Russian users and the last one has even stopped “ all commercial and warehousing activities “in the country.
En general, la industria de criptomonedas ha manifestado su apoyo a Ucrania tras la invasión rusa. El mayor exchange of the world, Binance donated USD $10 million to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the Ukrainian military on Monday, and prominent figures in the crypto space have also contributed large sums. However, several major US exchanges, including. Binance , Coinbase is an American company that operates a cryptocurrency exchange platform. y Kraken have refused to comply with the solicitud of Ukraine’s deputy prime minister to block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. the addresses of all Russian users.
While these platforms do not provide service in Russia and indicated that they will continue to abide by the sanctions, they refused to unilaterally freeze user accounts “ innocent “. Spokespersons for the exchanges citaron as the reason for its position the “ financial freedom ” granting cryptocurrencies, claiming that a blanket ban would punish the average Russian citizen.
Ukraine Turns to Bitcoin, and Russia May Do So Too
The sweeping sanctions have caused the value of the Russian ruble to plunge to record lows. Russians reportedly rushed to ATMs and stood in long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. lines on Sunday and Monday amid concerns that bank cards would stop working or that banks would limit cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. withdrawals.
Ukraine’s sovereign currency currency is a medium of exchange that defines value. has also plummeted as the armed conflict intensifies and the central bank places limits on electronic transactions and cash withdrawals. The scenario has prompted an increase in the use of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies The Ukrainians are looking for ways to safeguard their savings, possibly due to the fact that Ukrainians are looking for ways to safeguard their savings. The trade in Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. shot up nearly 300%. right after Putin declared a “ special military operation ” in Ukraine.
Cryptocurrency donations to support the Ukrainian armed forces has also been on the rise since last week and is approaching USD $30 million as reported by DiarioBitcoin . The government and several NGOs are receiving contributions Bitcoin and other cryptocurrencies.
On the other hand, as several analysts have pointed out, such digital assets could also be leveraged by Russia and its officials to circumvent sanctions and move capital out of the country. “ This is NOT good for Bitcoin “, opinions previously the CEO of Quantum Economics , Mati Greenspan.
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Article by Hannah Estefania Perez / DiarioBitcoin
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