EU wants to ban Russia from using cryptocurrencies

Brussels warns that the sanctions will have a negative impact on its own economy

From the European Commission they maintain that the economic consequences for the bloc are “a price worth paying” to contain Moscow.

The European Union seeks to ensure that cryptocurrencies are not used to circumvent sanctions imposed by the community bloc against Russia, French Finance Minister Bruno Le Maire said, quoted by Reuters.

“We are taking measures, in particular on cryptocurrencies or crypto assets , which must not be used to circumvent the financial sanctions established by the 27 countries of the EU,” Le Maire said.

The community bloc imposed a series of packages of restrictive measures against Moscow for the Russian military operation in Ukraine, including the freezing of the assets of the Central Bank of Russia and the disconnection of several banks of the Eurasian country from the international interbank SWIFT system.

However, the French minister acknowledged that the punitive measures will also affect the European Union itself. “The biggest risk here is inflation , driven in particular by energy prices,” he noted. “The secondary risk involves a possible greater inequality between member states, depending on the extent to which each of them is exposed to the need for Russian energy sources,” he concluded.

“A price worth paying”

In Brussels they are aware that their sanctions ” will have an immediate impact ” on the community bloc's own economy, but they assure that it is “a price worth paying” to contain Russia. “It is difficult to quantify this impact as the situation is developing rapidly. There are many unknowns, ” European Commission Executive Vice President Valdis Dombrovskis said on Wednesday.

“Growth will take a hit. We will see an impact on energy prices and supply chains, including raw materials. Confidence will take a hit. There will also be direct fiscal costs ,” he warned. “We expect gas and electricity prices to remain high this year. The overall impact on inflation and the economy is significant and is not expected to abate any time soon . So we will be in a high price, high inflation environment for longer. ” than we originally thought,” added Dombrovskis.

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