Russia Cut Off From International Finance, Raising a Debate on Decentralization

Russia Cut Off From International Finance, Raising a Debate on Decentralization

On Feb. 22, 2022, US President Joe Biden cut off Russia from international finance following its Ukraine row. Biden took action following Russia’s invasion of the Eastern Ukraine border, where Putin declared the regions independent. Now, citizens of Russia cannot complete international payments through their financial system, with only the option of digital assets being left.

Biden Cuts off Russia’s International Financing Following Ukraine Invasion Plans

The White House cut the Russian government from the international financial system yesterday following its actions on Ukraine. The Russia-Ukraine differences have been ongoing for long now as the world tries to prevent a possible war. On Monday, Putin sent his troops to the eastern parts of the Ukraine border and declared Luhansk and Donetsk regions independent.

Biden asked:
“Who in the Lord’s name does Putin think gives him the right to declare new so-called countries on territory that belonged to his neighbors?”
Other authorities further condemned Russia like the UN and US allies.
The UN Secretary-General Antonio Guterres said, “Let me be clear: The decision of the Russian Federation to recognize the so-called “independence” of certain areas of Donetsk and Luhansk regions is a violation of the territorial integrity and sovereignty of Ukraine.”
Biden also revealed that additional US forces deployed to the Baltic region. He said that the move is to send a message that the US and its allies are ready to defend all areas of the NATO territory. However, Biden stressed that his country’s moves are defensive and do not desire to fight Russia. Biden’s sanctions mainly target three of Putin’s most trusted men, Peter Fradkov, chairman of Promsvyazbank; Aleksandr Bortnikov, head of the Federal Security and Sergei Kiriyenko, a top official in Putin’s office. The sanctions are also heavily felt on two of Kremlin’s favorite banks, including Vnesheconombank, which holds $50B in assets. As a result, innocent Russians remain locked away from international remittances.

Centralized Show of Power in Russia-Ukraine Woes Calls for Decentralization

Today, Ukraine has been under a massive DDoS attack that sweeps across different ministries, and the perpetrator is unknown. However, Russia is the main suspect as its troops are strategically positioned to attack Ukraine. The large-scale cyber-attack has reportedly crumbled several companies, bank websites, and the public sector. The action by Russia comes after the White House showed its might on Tuesday by cutting off Russia from international finance. Now, no international remittances are possible to and from Russia as the US condemns its invasive actions on Ukraine. These occurrences send people thinking about the need for decentralized blockchain systems where similar attacks like Ukraine are more controlled. Now, innocent Russian families and businesses have been left with only a choice to turn to cryptocurrency to facilitate international remittances. Bitcoin and Ethereum can help these individuals out as they cannot be controlled by any centralized power, including the US. Also, no authority can monitor or block transactions carried out on blockchain technology as the systems are decentralized. The topic of decentralization across the world’s economy is currently among the hottest discussions. Elsewhere Canada has been freezing bank accounts of protestors in a way that overrides the routine legal procedures. The situation there is another case of the effects of centralization. Since these are main events, only time will tell how the world will view the need for mainstreaming blockchain technology. Its campaign on decentralization is the best solution for the abuse of centralized power.
Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.