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Recent statement of the President of ECB seems out of the league as it contradicts the real-life data and various expert opinions
Lately, the Central Bank President of Europe, Christine Legarde, put out warnings about the use of crypto and digital assets by Russians to avoid the sanctions. This time she again reminds his warnings that both Russian individuals and businesses are using cryptocurrencies in order to bypass the sanctions imposed on the country by the international community due to the Ukraine invasion.
While ECB presidents doubt the use of crypto to bypass the sanctions, data and reports show somewhat different situations. The data recorded on 18th March showcased that the daily trading volume of ruble-denominated crypto was just $7.4 million. When compared to its recent high figures on 7th March, it’s almost a 50% drop.
The total Ruble–crypto is somewhat fluctuating while the daily trading volume of Bitcoin is generally fluctuating between the value of $20 bn to $40 bn. On Tuesday, the Bank for International Settlements Innovations Summit was held in which Legarde, in her presentation, said that the European Financial Authorities in recent times had seen the stability in trading volumes in Ruble with cryptos, and it even reached the highest level since 2021.
In her presentation, without pointing her finger at the Russian government, she laid the blame on individuals and businesses in Russia for turning towards cryptocurrencies. While explaining the recent spike in crypto daily trading volume, she said it’s certainly because of the use of digital assets as a medium to get around the sanctions.
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Legarde asked if crypto is a threat or has been a threat in the past? Then she said yes and laid out the explanation because whenever there are a lot of doubtful transactions happening or payments that are related or linked to criminal activities, they are more often found out to be backed by crypto assets.
However, as said earlier, Legarde’s claim does not seem similar to what experts say while examining recent trading volume data. Jake Chevinsky from The Blockchain Association said that Russia is not likely to use cryptocurrencies or digital assets as a way to avoid sanctions imposed by western and European countries.
Data from different crypto firms proves what Jake said; for instance, Kaiko observed that the trading volume of Ruble to USDT is down by 86% from its peak on 7th March, which was $38 million that recorded to less than $5 million on 22nd March.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
