With the mounting crisis in the East, the Internet has been flooded with news about which countries and companies are imposing sanctions on Russia. As the curtain continues to fall on Putin, and the Russian ruble plummets in value, many wonder if cryptocurrency might be used to thwart attempts to smoke them out.

An Egregious Economy

Following Russia’s invasion of Ukraine, many Western companies pulled out of Russia, including McDonald’s and Netflix. Russia is also contending with many frozen assets and halted transactions. Most of the world has departed from Russia, in an effort to express fury and opposition over the Ukranian attack.

The impact, of course, was meant to be devastating. But warfare has changed a lot in the past few decades–what would once have been crippling barriers can now be circumvented through the use of Internet loopholes. Cryptocurrency is one option that many Russians seem to be considering.

A Crypto Comeback

One of the biggest draws of cryptocurrency is its unbiased nature. Because it is a financial institution that is completely separate from global economies and governments, it seems to be the ideal solution to Russia’s setbacks.

Indeed, Russia is the third-largest bitcoin miner, and many statistics suggest that crypto investments have increased ever since the invasion of Ukraine. However, the general understanding is that those who are investing in cryptocurrencies such as Bitcoin are not necessarily the Russian elite, but normal citizens who are trying to salvage their savings as their rubles lose their value.

As powerful as cryptocurrency is, it is unlikely that it would be able to sustain a whole country’s economy. Russian oligarchs and moguls seem to be pooling their resources and riches elsewhere–in offshore bank accounts and gold reserves, for example–rather than relying on crypto.

A Hazy Horizon

However, if there is one thing the war has revealed, it’s that the tides can turn in an instant. In the time of writing, the ruble has made a steep recovery as Russian banks cut down on interest rates. No one knows what will happen next, and how the Russian economy will fare in the coming months–and years–as the war and its repercussions pervade.

The role of crypto in the Russian posture is also uncertain. If more businesses and banks clamp down on Russia, there might be no other option but for them to turn to crypto. What is known is that should Bitcoin or Ethereum or any other cryptocurrency be the source of Russia–or any other country’s–rescue, it will certainly change the terrain of crypto forever.

The future of cryptocurrency is remarkably uncertain but then again–what’s new?