The chief executive officer of Ripple quoted a tweet and noted that crypto has abilities and also limitations because of the existence of legal rules and frameworks on crypto businesses.
Recently many countries imposed their restrictions on Russia, to stop the invasions on Ukraine. In particular financial sanctions on Russia could result in significant problems and if these sanctions remain active then in the future surely it will hit a strong hammer on the economy of Russia. But besides all these things, people are saying that Russia will bypass these financial sanctions easily through the use of the crypto & blockchain industry help.
On 28 February, Asheesh Birla, General Manager at RippleNet, responded against the speculations that are going on Russia to invade the sanctions with the use of crypto-based payment methods.
Asheesh noted that the daily liquidity of crypto Market transactions is not enough to complete the need for daily FX transactions of Russia.
“There simply isn’t enough global liquidity to support Russia’s needs (the country’s FX needs, not individuals).”
Through the Twitter thread, Asheesh also noted that Russia has huge support and time to establish its direct banking services in Asia. Hinted that Russia may facilitate transactions with the use of mediator countries to transfer funds.
“SWIFT is one part of the equation here – banning some Russian banks from using SWIFT does complicate matters, but let’s not forget that Russia has had ample time to prepare, setting up direct banking relationships in Asia and elsewhere to get around correspondents.”
In response to these statements raised by RippleNet GM, The Chief executive officer of RippleNet Brad Garlinghouse responded and noted that Ripple is inclined to follow the rules and regulations.
Through this response tweet, Ripple’s boss confirmed that Ripple and Ripple-like firms will also not support Russia under the sanctions to comply with the legal rules and regulations.
Read also: US govt orders crypto exchanges to comply with sanctions imposed on Russia: Ukraine Crisis