Visa, the world’s largest card operators and payment providers, and MasterCardannounced that they have blocked Russian banks from their networks as part of US sanctions orders. The companies separately announced that they have donated $2 million to Ukraine, which will be used for humanitarian aid.
The move comes after the most stringent US sanctions ever against Russia, after several Russian banks were announced to be blocked from the SWIFT transaction system. Washington also announced that it is freezing the overseas assets of the Russian central bank, as well as the assets of several senior Kremlin officials.
Visastated that it is taking swift steps to comply with the new restrictions, while Mastercard stated that it will continue to work with regulators to fully comply with their requirements. Neither firm offered an opinion on whether the blacklist would have a financial impact.
New sanctions against Russia over its invasion of Ukraine caused many companies to sever ties with the country. Recently, British oil giant BP said it has withdrawn from its 20% stake in state-owned Russian peer Rosneft, which could go up to $25 billion.
Shell also said it would end its Russian operations in partnership with gas group Gazprom. Stock market operators Nasdaq and Intercontinental Exchange also temporarily stopped trading shares of Russia-based companies, Reuters reported.
Could These Sanctions Create More Potential for Crypto?
Visa and Mastercard blocking Russian banks and strict sanctions against most local lenders, especially by citizens prepared to lose access to traditional financial networks cryptocurrencymay lead to greater adoption.
Considering that international banks, including HSBC, have also announced that they will cease operations in the country, this potential is quite high.
Russian crypto trading volumes have already soared after the first wave of US sanctions, while the Ruble has slumped against Bitcoin and most major altcoins.
Cryptocurrency adoption in Russia was on the rise even before the conflict. A government report stated that the Russians hold about 12% of the world’s assets. The country has also been identified as a potential target for crypto mining, especially after bans in major China and Kazakhstan.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.