Ripple's CEO cited a tweet and noted that cryptocurrencies have capabilities and limitations due to the existence of legal rules and frameworks governing the business of cryptocurrencies.
Recently, many countries have imposed restrictions on Russia in order to stop the invasion of Ukraine. Financial sanctions against Russia in particular could cause major problems and if they remain in effect, they will certainly hit the Russian economy hard in the future. But apart from all these things, people are saying that Russia will easily bypass these financial sanctions by using the help of cryptocurrency and blockchain industry.
On Feb. 28, RippleNet Managing Director Asheesh Birla responded to speculation that Russia was using cryptocurrency-based payments to hack sanctions.
Asheesh noted that the daily liquidity of cryptocurrency market transactions is not enough to complete the daily demand for foreign exchange transactions in Russia.
“There simply isn’t enough global liquidity to support Russia’s needs (the country’s foreign exchange needs, not individuals).”
Via a Twitter thread, Asheesh also noted that Russia has tremendous support and time to establish its direct banking services in Asia. Hinting that Russia may facilitate deals by using mediating countries to transfer funds.
“SWIFT is part of it – banning some Russian banks from using SWIFT does complicate things, but let’s not forget that Russia has plenty of time to prepare and establish direct banking relationships in Asia and elsewhere to bypass correspondent banks. “
In response to these statements made by RippleNet GM, RippleNet CEO Brad Garlinghouse responded and noted Ripple's preference for compliance with rules and regulations.
. @ashgoblue illustrates the reality of the role (or lack thereof) of cryptocurrencies and blockchains in evading global sanctions. To eliminate any confusion – RippleNet (while able to do more than just send messages to SWIFT) complies with international law and OFAC sanctions. Period, period. https://t.co/WmQC4sHcSa-Brad Garlinghouse (@bgarlinghouse) February 28, 2022
With this response tweet, Ripple's boss confirmed that Ripple and Ripple-like companies will also not support Russia's compliance with laws and regulations under sanctions.
Read also: US government orders cryptocurrency exchanges to comply with sanctions imposed on Russia: Ukraine crisis