Experts Say Their Mind on Using Cryptos to Cushion the Effect of a Sanction in Belarus

Belarus is close to getting some penalties but can Bitcoin or Ethereum help the country avert the effects?

After the election between President Alexander Lukashenko and his contenders, people have continued to show their disapproval of the result which puts the sitting president in a position to rule for another five years. Others such as the U.S. and the European Union have shown their dissatisfaction and are likely to penalize Belarus if it is not saved by BTC and ETH.

The Guardian clearly wrote that the EU is going to impose sanctions against Belarus. Now Belarus is likely going to attempt averting the impact of any financial punishment with cryptocurrencies but RBC media in Russia is of the opinion that this option won’t work.

According to Valery Petrov, a top official at the Russian Association of the Crypto Industry and Blockchain, turning to cryptocurrencies for help is a nice option only “if it does not contradict external and internal legislation.”

Belarus happens to be one of the countries where people like to site their crypto firms. The country is investing in the industry with the hope that it will be a source of income to the government and the people.

One of Belarus government’s major areas of concern is the development of a digital technology. It hopes to also digitalize the economy and may present a plan for this at the next OSCE meeting in Berlin.

Belarus has developed regulations for the blockchain industry and cryptocurrency since July. The idea is to welcome investors in blockchain tech that feel the regulations are easy to cope with.

Petrov thinks that if Belarus decides to solve any sanction with cryptos, the solution may not be long-lasting just like what happened in the case of Venezuela and Iran.

Another person with the same ideas as Petrov’s is Nikita Zuboreb, a Russian cryptocurrency analyst at Bestchange who thinks that so long as a country has the tendency to be immensely affected by a sanction, using cryptos will not create a perfect solution.

Instead of crypto, Nikita thinks it is better to use IT infrastructure as a solution if the sanction is imposed because Belarus has a developed IT industry.

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