Circle CEO Says Crypto Can Be Double-Edged Sword In Difficult Times

Time Stamp: March 3, 2022 7:53 AM
Source Node: 1196734

The Circle CEO Says that crypto can actually be a double-edged sword in difficult times like the ones in Ukraine lately after Russia attacked the country as we reported in the previous crypto news.

The Russia-Ukraine conflict is far from cooling down and in the thick of the chaos, the Circle CEO says that crypto actually can be a double-edged sword in times like these. The crypto market is rallying in the face of the growing geopolitical crisis but in addition to the increasing acceptance, the crisis in Ukraine is another driver that outlined how BTC and cryptocurrencies can actually Acta as a mechanism to raise funds when all other routes are cut off.

According to reports from Bloomberg, Jeremy Allaire said that Russia’s attack on Ukraine demonstrates the paradox of crypto for both participants and regulators. On one hand, the Russian forces invaded Ukraine and a few vehicles have been formed to raise funds for the people in Ukraine to provide them with medicine, clothing, food, and more by accepting crypto. On the other hand, there’s a chance that Russian invidious and companies could try to use digital assets to avoid the sanctions imposed by western countries. The Circle CEO said:

“People are celebrating that. But it also allows people to evade things. The open internet is a double-edged sword, and that’s the case with crypto.”

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Calls to freeze the Russian’ users’ blockchain addresses intensified along with the ongoing crisis but in actuality, Allaire said that the platforms don’t have the information despite being able to track the activities on exchanges and flag suspicious activity to the regulators:

“We don’t necessarily know – just like the U.S. doesn’t know – if piles of cash are being used by Russian oligarchs. So you don’t know.”

In a bid to destabilize the cut the financial connection to the western economies, the EU and NATO imposed sanctions and as a result, BTC trading volume against the ruble crashed to the lowest level since 2021. many industry experts think that the financial insecurity could start even a bigger wave of crypto adoption in the region due to which the vice PM of Ukraine Mykhailo Fedorov urged platforms to restrict all Russian users’ addresses and back the defense of Ukraine.

So far, apart from Animoca Brands, none of the venues responded in affirmative. Binance donated funds to the people in Ukraine but won’t terminate the services to the Russian users.

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