In the wake of the Russian invasion of Ukraine, many countries in the EU and the US have joined together to impose strict sanctions on Russia. Among these sanctions is an important one – no access to SWIFT. What does this mean for Russia?
Russian banks will not be able to transact business with international banks. This move was sparked by the fact that previously imposed restrictions didn’t deter Russia from invading its neighbor. This will make things extremely difficult for Russia to carry out transactions with more than 10,000 financial institutions around the world. Disconnecting Russia from the network means that the country won’t have access to $640 billion + in funds held in reserve around the world.
According to billionaire Bill Hackman’s Twitter post, this will make Russian citizens want to withdraw their money from banks so that they don’t suffer. Russians will not be able to purchase basic necessities. Of course, one can assume that Russia does have money invested in crypto. Many people wonder if Russia can access this alternative and use crypto to evade sanctions.
Bitcoin and other cryptos will make it easy for Russia to participate in international trade and keep its economy running. This can happen only if they can find partners willing to trade with them. It is no secret that Russia has been working on digital currency alternatives for a while now including creating the Digital Ruble. This is a CBDC project which is in its infancy and in the testing phase.