According to analysts, the procedures revealed by the US and the UK kind of alleviated the uncertainty reigning in the cryptocurrency environment. The entities pointed out that these currencies can be helpful in both Ukraine and Russia because of their decentralized features.
Commanded by President Joe Biden, the US government has applied a series of economic punishments on five of the largest Russian financial entities, obstructing all the assets that these institutions possess in the United States of America, estimated at more than USD 1 trillion.
After applying this measure, the US joins efforts with other concerned nations that have taken the same stances. A country like the United Kingdom stands out especially, where its prime minister, Boris Johnson, also announced a similar measure. It freezes the Russian financial entities stored in the English region.
On the other hand, regarding the measure taken by the US, President Biden highlighted in a press conference that the procedure got created to prevent Russian entities and the government from continuing to collect new funds on US territory.
Regarding the range of these procedures, Biden explained that for now, it only applies to banks and associated entities, since it is a measure accorded between the highest representatives of the United States of America and the G7, which has a more superior level than the punishments initially applied to the Russian Nation this week.
According to a report revealed by the Financial Times, it seems that the expectation of the US president and the British prime minister is that this also includes Russia suspending the Swift international payment network, something that hasn’t reached an agreement yet.
However, Biden maintains that the weight of these sanctions far outweighs the effect that excluding the Soviet nation from the system as mentioned above could have, and it would also be on the table to limit the country’s ability to negotiate with other currencies, such as dollars, euros, pounds, and yen.
Bitcoin and Cryptocurrencies React Positively
The announcements made by Biden and Jhonson this February 24 created a positive impact on the digital currency market, in which a large number of exponents partially regained their health and started to breathe again.
It is worth considering the case of Bitcoin, a digital asset that, after marking low rates near USD 34,500, managed to reach a new high peak valued at USD 39,000 but keeps its constant fluctuation to date.
Just Useful and Balanced Cryptocurrencies
Many analysts have described how helpful digital currencies like Bitcoin are when it comes to bringing a financial back-up to the Ukrainian government and troops amid the fight in the eastern nation, precisely because it operates as an instrument to share values through transferences without third party control.
However, just as it can be a positive alternative for Ukraine, these assets could also bring many advantages for the Russian government, which could also employ these methods to find financing in the face of restrictions and punishments applied by a good faction of the world.
By: Jenson Nuñez
