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Bitcoin is a recipe to help Russia circumvent economic sanctions

While the rise in transaction fees has made it difficult for bitcoin to be used in everyday transactions, it has attracted more and more companies and countries to use the cryptocurrency. This is even more true for those countries that are being shut out of the international financial system, as Putin's aide.

Sergei Glazyev, a consultant to Russian president Vladimir Putin, is reported to believe that bitcoin and other cryptocurrencies can help the country's banking system deal with sanctions in the West. He mentioned in the Presidential Executive Council that the sanctions regime created "objective needs" for cryptocurrencies.

He was also called at the meeting to create encrypted rubles. Glazyev even suggested that Russian government agencies conduct "sensitive" service transactions in cryptocurrencies around the world.

Dr. Glazyev is an economist and a member of the State Economic Commission of the Russian Central Bank. He also served as Minister for Foreign Economic Relations in Yeltsin's Cabinet from 1992 to 1993.

Glazyev is absolutely motivated by personal interests to help the Russian government find ways to evade sanctions. Because he is personally being punished by the United States and the EU because of his role in the Crimea incident in 2014.

In bitcoin as the center

Except for Russia, other countries or organizations that are hostile to the United States are using or planning to use bitcoin to evade sanctions, including Iran, WikiLeaks and even a Ukrainian shipping company. In addition, North Korea is also accused of recruiting a hacking corps to steal money from the Bitcoin Exchange in response to its poor financial position.

The U.S. government seems to be aware of this issue and is preparing to respond. William Browder, a co-founder of an investment fund in Russia, will soon go to Europe to testify before the U.S. Committee for Security and Cooperation on this issue. He said:

These cryptocurrencies are gifts that God gave to criminals and dictators who tried to secure their money. He also believes that the United States and other Western governments should pay close attention to the links between cryptocurrencies and the Magnitsky sanctions and other sanctions programs.