Ripple CEO claims that Russia cannot use cryptocurrency to escape the impact of global sanctions.
Challenging speculations that Russia could use cryptocurrencies to evade sanctions, Ripple CEO Brad Garlinghouse explained the impossibility around this assumption. Meanwhile, Ukraine has been receiving Bitcoin donations from different countries around the world to assist the country in its current challenges. Last week, Coinspeaker reported experts’ assertion that Russia could use cryptocurrencies as a way out of many of its sanctions. The US government has restricted Russia’s access to foreign capital. After the sanctions, experts say Russia could repeat its 2014 actions by leveraging cryptocurrencies.
The European Commission removed Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) as the war continued. Many believe that Ripple’s XRP could be a suitable crypto asset for Russia to evade sanctions. In response, Garlinghouse and RippleNet general manager, Asheesh Birla, explained the positions of XRP and RippleNet. Ripple CEO claims that Russia cannot use cryptocurrency to escape the impact of global sanctions.
Russia Can’t Use Cryptocurrencies To Avoid Financial Sanctions, Ripple CEO Explains
In addition to other factors, Birla speak that cryptocurrencies are now becoming easier to track by governments. Garlinghouse Supported The general manager of the company, reiterates why Russia cannot use cryptocurrencies to avoid sanctions. He points out the process of converting crypto to fiat currency, involving financial institutions. However, financial institutions are responsible for losing their license if anyone on the OFAC list bypasses the security measures. Extreme KYC/AML policies are in place to avoid letting anyone on the Office of Foreign Assets Control’s list get out of security,
Adding that, the Ripple CEO gave an example of RippleNet, saying that the network is committed to “NOT working with punitive banks and partner restricted counties”. He added that Ripple and its customer support comply with and enforce OFC and KYC/AML laws. Concluding his explanation, Garlinghouse said:
“Instead of listening to responsible players who have made it clear that they will comply with legal sanctions, some experts and media insist on continuing to paint crypto as the Way to go. Silk – a particularly old-fashioned and tired argument that is simply not true today.”
As several automakers suspended operations in Russia, tech giant Apple (NASDAQ: AAPL) stopped selling its products in the country. Apple added that it has removed Russian state-controlled media from its App Store worldwide.
As it stands, it is uncertain how long the fight will last as families continue to lose their loved ones.
Ibukun is a finance/crypto writer interested in conveying relevant information, using uncomplicated words to reach any audience. In addition to writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos, where she resides.
https://www.coinspeaker.com/ripple-ceo-says-russia-crypto-sanctions/ Ripple CEO Brad Garlinghouse Says Russia Can’t Use Cryptocurrency To Evade Sanctions