Russia’s invasion of Ukraine could be a catalyst for the growth of cryptocurrencies in general but also as an opportunity to use them as a tool for war. But although there are multiple ways in which Russia can do this in theory, it is much more difficult in practice.
Developing a digital rouble could allow Russia to trade directly with other countries without the need for US dollars. And privately-issued cryptocurrencies could help evade sanctions. Ukraine is also using cryptocurrencies to fundraise to fight back against Russia’s aggression.
Cryptocurrency transactions have been on the rise since the invasion but there is no evidence yet they are being used in a widespread fashion to bypass sanctions.