The European Central Bank has warned against Russia's use of cryptocurrency to circumvent sanctions.
European Central Bank President Christine Lagarde said that what worries me most is the large amount of rubles being converted into crypto assets since Russia was hit by a series of sanctions After the attack on Ukraine last month.
And she added in an online banking forum that crypto assets are used to circumvent the sanctions imposed by many countries of the world against Russia and a specific number of actors.
In Europe, we have taken steps to clearly indicate all exchanges, transfers and services related to crypto-assets, according to AFP.
Western sanctions have included the disconnection of some Russian banks from the SWIFT system, thus cutting them off from the global banking system.
As a result, Russians have flocked to cryptocurrencies such as Bitcoin and Tuther that are traded outside the formal banking system.
This prompted the European Union to issue a statement earlier this month confirming that crypto assets were also included in the sanctions.
Lagarde and many of the world's central bankers are critics of unregulated cryptocurrencies that are volatile and can expose investors to huge losses.
To counter the rise of cryptocurrencies and respond to the growing shift toward cashless payments, the European Central Bank is considering creating a digital euro.
The CBDC digital currency will be an electronic version of euro banknotes and coins.
