Since Ukraine receives donations through Bitcoin and other cryptocurrencies, people are concerned that Russia would use cryptocurrencies to avoid sanctions from other countries.
One of the most significant sanctions imposed by the rest of the world is refusing Russia access to the SWIFT International Payment Services. These sanctions brought severe economic distress for Russia, forcing them to freeze its financial markets to avoid an economic crash.
Ripple CEO and Co-Founder Brad Garlinghouse explained in a Twitter post why Vladimir Putin could not use cryptocurrencies to avoid economic sanctions imposed upon Russia.
Garlinghouse supported Ripple General Manager Asheesh Birla’s comment, claiming that several banking partners will risk their licenses if news goes out that they allowed a blacklisted person or country to bypass their security measures.
In Ripple’s case, Garlinghouse ensures that RippleNet remains free from any restricted countries or financial institutions.
Former US candidate Hilary Clinton expressed her disappointment in the exchanges’ refusal to avoid servicing Russian users despite pure intentions within the cryptocurrency industry.
Garlinghouse once more dismissed accusations of cryptocurrency being available for criminals to launder funds, calling these accusations “outdated and tired”.
Furthermore, Senator Elizabeth Warren and other Democratic lawmakers requested the Treasury Department to ensure that cryptocurrency exchanges comply with the stated sanctions by other countries.
Carol House, director of cybersecurity in the National Security Council, stated that Russia would need to bypass all US sanctions, making cryptocurrency an ineffective tool.