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Cryptocurrencies are a “threat” in the Russian context, according to Christine Lagarde

2022-03-22T17:40:11.425Z


The volumes of rubles converted into cryptocurrencies have reached a particularly high level since the sanctions imposed by the West.


The President of the European Central Bank (ECB), Christine Lagarde, warned on Tuesday of the "

threat

" posed by cryptocurrencies obtained in exchange for rubles in an attempt to circumvent the sanctions of Western countries against Russia.

Read alsoWar in Ukraine: cryptos, tools for circumventing sanctions

Of all the digital asset classes, "

cryptoassets concern me the most in the Russian context

," the central banker told a Bank for International Settlements innovation forum.

Is this a threat?

Yes

,” she said, after pointing out that cryptocurrencies escaping the traditional banking system are “

certainly being used as a means of trying to circumvent the sanctions that have been decided by many countries around the world against Russia and specific actors

.

Individuals or Russian companies “

Obviously try to convert their rubles into crypto-assets

”, noted Christine Lagarde, noting that the volumes of rubles converted had reached a particularly high level since the sanctions imposed by the West.

Read alsoRussia would use bitcoins to circumvent sanctions

The inclusion of cryptocurrencies in the catalog of Western sanctions

Europe recently extended to cryptocurrencies its catalog of sanctions taken after the start of the conflict in Ukraine, in particular by excluding Russian banking establishments from the Swift international interbank system.


But cryptocurrencies, using

blockchain

technology , can be used outside the banking system by sanctioned individuals to continue transacting.

Before the armed conflict in Ukraine, Russia already occupied the top of the world podium for the use and creation (“

mining

”) of cryptocurrencies.


Bitcoin, the most famous of cryptocurrencies, "

is not (...) a store of value, but rather a speculative asset, which is a bit like tulip bulbs in the Netherlands in the 17th century

", has many his side declared the Governor of the Banque de France, François Villeroy de Galhau, at the opening of the forum.

Central bankers are accustomed to criticism of cryptocurrencies because of their high volatility, their possible use for the benefit of criminal activities and more generally their opacity.

The ECB is betting on the creation within 5 years of a digital euro as a secure and anonymous central bank currency for daily payments, alongside cash.

For this complex project, “

we are on time and on budget

,” assured Christine Lagarde.

Read alsoThe governor of the Banque de France compares speculation around bitcoin to “tulipomania”

Source: lefigaro

All news articles on 2022-03-22

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