Cryptocurrencies serve as a refuge for many residents of Russia, says CEO of Coinbase
Coinbase CEO Brian Armstrong shared an extensive message thread through his Twitter account, in which he highlighted the role of cryptocurrencies for residents of Russia, serving as a refuge amid the fall seen in the price of the local currency amid the sanctions imposed by governments and international entities.
Armstrong’s comments took place in a series of messages where he presented his point of view on cryptocurrencies, starting from the premise that they could serve as a mechanism for the Russian government to avoid international sanctions against it.
Regarding the usefulness of cryptocurrencies for residents of Russia, Armstrong commented:
“Some ordinary Russians are using crypto as a lifeline now that their currency has collapsed. Many of them likely oppose what their country is doing, and a ban would hurt them, too. That said, if the US government decides to impose a ban, we will of course follow those laws.”
These words came after reiterating that Coinbase would not block access to people residing in Russia, since everyone deserves access to financial services even if the laws point the other way.
Let’s keep in mind that at the beginning of this month, the Coinbase team joined the group of exchanges that assured they would not close their services to users operating from Russia, since this would represent a violation of their basic rights and many of them have nothing to do with it. to do with the armed conflict promoted by his government against Ukraine.
“They are not the ideal mechanism to avoid sanctions,” says Armstrong
On the other hand, Armstrong referred to the idea that the Russian government could use cryptocurrencies to avoid sanctions, and stated that he does not believe in this premise since they are not the most suitable vehicle to achieve this type of objective.
In this regard, Armstrong commented:
“…we don’t think there’s a high risk of Russian oligarchs using crypto to avoid sanctions. Because it is an open ledger, trying to sneak lots of money through crypto would be more traceable than using U.S. dollars cash, art, gold, or other assets..”