Top Economist Says Russia Using Crypto To Bypass Sanctions Would Be Dreadfully Bearish For Digital Assets

A well-known economist and analyst, Alex Kruger, expressed that if Russia used crypto to bypass sanctions, it would be a worst-case scenario for Digital assets.

Kruger also said that the cryptocurrency market had reached the bottom, and if the geopolitical situation does not worsen, investors will soon see the growth of digital assets.

Alex Kruger expressed concern about the hypothetical possibility of Russia using cryptocurrencies to circumvent US and EU sanctions. He posted a message on Twitter. He warned investors that if Russia turns to cryptocurrencies to avoid US sanctions, the digital asset market will become the central focus of intense criticism and restrictions from the United States and European supervisory authorities.

“Russia using crypto to bypass sanctions would be dreadfully bearish. Don’t expect it to happen, be careful what you wish for.”

Russia using crypto to bypass sanctions would be dreadfully bearish

don't expect it to happen

but be careful what you wish for

— Alex Krüger (@krugermacro) February 24, 2022

Krueger suggests that sanctions circumvention will be enough for U.S. and EU regulators to ban digital assets to protect national security.

“US regulators would be pushed to crush the industry as a matter of national security.”

The United States, along with allies, has imposed sanctions against Russia that include cutting off Russia’s major financial institutions from the US financial system. According to Krueger, prices for cryptocurrencies and traditional assets such as stocks and commodities bottomed out after that:

“Stocks and cryptocurrencies have bottomed out. Now everyone is starting to reinvest.”

In his opinion, the cryptocurrency market has passed the worst-case scenario and is set for a positive trend. Krueger believes that the changes in market behavior resulting from deterioration in the geopolitical situation are traditional. He stressed that the conflict is relatively large-scale, but this did not significantly affect the cryptocurrency market.

This week, amid heightened tensions in eastern Europe, experts at The New York Times said that it would be impossible to survive the US sanctions without Russia’s taking aid of digital assets.