Economist Alex Kruger has warned that crypto assets will be adversely affected if Russia turns to cryptocurrencies to evade sanctions.
Kruger said that the use of cryptocurrencies to circumvent sanctions will receive a serious response from US regulators:
“Russia’s use of crypto to circumvent sanctions would cause a terrible downturn. Don’t expect this to happen. Be careful what you wish for. If that happens, US regulators will be forced to crush the industry as a matter of national security.”
The United States, together with its allies and partners, imposed various sanctions on Russia after it invaded its neighbor Ukraine. The sanctions also include the separation of Russia’s leading financial institutions from the US financial system. According to the economist, prices of crypto and other assets such as stocks and commodities have bottomed out after the plunge caused by the Russia-Ukraine conflict.
However, Kruger thinks that the prices of crypto and other assets have bottomed out. Kruger said:
“How can things get worse:
- If China invades Taiwan
- If Russia invades more countries
- Nuclear weapons
Out of these scenarios, the market has already seen the worst-case scenario and fend off it. This happens in every gunfight. This may have been different as it has been bigger than any conflict for decades, but the market doesn’t say so.”
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