European Central Bank President Christine Lagarde has reiterated warnings that Russian individuals and companies are using cryptocurrencies to circumvent sanctions.
However, as of March 18, daily ruble-denominated crypto transaction volume stood at just $7.4 million, more than 50% below recent figures and a peak of $70 million on March 7, according to Chainalysis data.
This amount represents a small slippage from the total volume of the global crypto market, with Bitcoin's total daily volume typically fluctuating between $20 billion and $40 billion.
In a presentation at the Bank for International Settlements Innovation Summit on Tuesday, the crypto skeptic Lagarde said European financial authorities had seen the "stable ruble volumes, in crypto, at the moment." [is at] the highest level we have seen since perhaps 2021.โ
Lagarde did not point the finger at the Russian government, noting that mainly Russian individuals and companies turned to cryptocurrencies. However, he said that cryptocurrencies are "certainly being used as a way of trying to circumvent sanctions."
"So it is [crypto] a threat? Yes. Has he been... a threat in the past? Yes, because when you look at a lot of the dubious transactions that are going on, a lot of the criminal activity payments that are going on, very often you find some crypto assets.โ
Lagarde's comments appear to be at odds with the data provided by Chainalysis and Kaiko, as well as with expert opinion. Jake Chervinsky of the Blockchain Association has said that Russia is unlikely to use crypto assets as a method of circumventing Western sanctions.
Data provided by the cryptographic analysis company Kaiko, showed that ruble-to-USDT volume is down 86% from its high of $38 million on March 7 to below $5 million on March 22. There was a surge in the run up to the war and spikes after, but volumes are now back to levels below those seen for most of early February. That is before the sanctions were imposed.
Related: Fight economic warfare with the double-edged sword of cryptocurrencies
Rather, cryptocurrency is playing a role in helping Ukrainian refugees escape the country. CNBC told the story of a Ukrainian refugee using the pseudonym โFadeyโ who fled the war-torn nation with $2000 worth of Bitcoin in a cold wallet, making it much easier for him to access his monetary assets once he was safe. in Poland.
Alex Gladstein, director of strategy at the Human Rights Foundation, said trying to withdraw money from Ukrainian banks in the weeks leading up to the invasion was incredibly difficult and highlighted the difficulties faced by refugees currently trying to access their funds from foreign countries. like Poland.
โHow are you going to access your Ukrainian bank account in Poland? Good luck."
Donations made to Ukraine via crypto assets have skyrocketed in the last 3 months and total daily donations made to Ukraine now stand at $100.9 million, according to data from Merkel Science.
