Due to Russia’s military attacks on Ukraine, EU Commission President Ursula von der Leuen announced that it will impose sanctions on Russia and that Russia will be removed from the SWIFT system.
EU Commission President Leyen said in a statement:
The European Union and its partners are trying to limit Putin’s ability to finance the war. We commit to EU leaders that a certain number of Russian banks are cut off from the international financial system and removed from SWIFT with the aim of harming their ability to operate globally.
said.
The world of SWIFT most common interbank payment system Leyen stated that in the event of Russia’s withdrawal, export and import that they can effectively prevent it.
In a statement made by SWIFT on the subject, it is stated that its institutions are on the sanctions. have no authority and EU regulations. have to comply said they were.
France, Germany, Italy, UK, Canada and USA Their leaders shared the following words as their common view on defending Ukraine against Russia:
We will hold Russia accountable and ensure that this war is a strategic failure for Putin.
What is SWIFT (Society for Worldwide Interbank Financial Telecommunication)?
Founded in 1973, SWIFT is headquartered in Belgium and worldwide. of 200 on you 11 thousand from the country over Bank and the messaging system used by the financial institution. It is the name given and helps to transfer funds between banks located all over the world.
Founded jointly by American and European banks, which do not want a single institution to develop its own system, SWIFT is supervised by the Belgian Central Bank together with central banks from all over the world.
In the SWIFT system, trillions of dollars are transferred every day. More than 40 million messages being sent. These messages more than 1 percent It is thought that the Russians used it.
In SWIFT, which is known to require three banks to transfer money through the system, each bank needs a SWIFT code for transactions. The bank first receives the money from the transferring bank and directs it to the receiving bank, thus performing the transaction.
Removing Russia from the SWIFT System
If Russian institutions and banks are removed from SWIFT, they will lose access to the smooth and instant transactions normally provided. Companies transacting with Russian banks will have to access them directly, resulting in delays and additional costs.
Keep it in Bitcoin if Worried
Exclusion of Russian banks from the SWIFT system escaping to crypto one may have occasion is estimated. Now, Russians are more involved in money transfer. costly transaction when we take into account security of the blockchain system and low cost this estimate it makes sense.
Mati Greenspan, founder and CEO of financial advisory firm Quantum Economics:
If a wealthy person is worried about their account being frozen due to sanctions, they can keep their wealth in Bitcoin for protection.
said.
Predicting this situation, Mykhailo Fedorov, Deputy Prime Minister and Minister of Digital Transformation of Ukraine, from all major cryptocurrency exchanges. He wanted the addresses of Russian users to be blocked.
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