Ripple clarifies role of XRP and Crypto amid Russia ban from SWIFT

Rick Steves

Some are saying that Russia could potentially evade sanctions and get around SWIFT using Crypto. Ripple’s GM outlined some of the key arguments refuting this.

As the tragic events in Ukraine unfold, the international community has agreed to ban Russia from SWIFT, which led many to question the role of cryptocurrencies in keeping Russia’s war machine and economy afloat.

Ripple’s XRP comes to mind as a potential substitute not only for its overall popularity in the crypto space but also because it is fast and cheap to settle, unlike Bitcoin.

For that reason, Ripple chief executive Brad Garlinghouse and the RippleNet General Manager Asheesh Birla went to Twitter to clarify the role of XRP and RippleNet.

Issues with tracking, liquidity, and regulation

Ripple CEO Garlighouse said: “To clear any confusion – RippleNet (while being able to do much more than just messaging a la SWIFT) abides by international law & OFAC sanctions. Period, full stop.”

He also pointed to Asheesh Birla’s thread, where he lays out the reality of crypto & blockchain’s role (or lack thereof) to evade global sanctions.

The full transcript of Asheesh Birla’s Twitter thread below:

“In the last few days, we’ve seen some say that Russia could potentially evade sanctions and get around SWIFT using crypto. I outline some of the key arguments refuting this below (and a chart 😄)

1. Crypto is only becoming more easily trackable by software and governments

2. . There simply isn’t enough global liquidity to support Russia’s needs (the country’s FX needs, not individuals)

3. on/off ramps are by and large regulated financial institutions that have to abide by OFAC laws

Diving into #2 – our team took a look at the data behind this. As stated by the US Treasury dept – Russia conducts nearly $50B in FX transactions a day. As the largest crypto, bitcoin’s volume is usually between about 20-50B a day. Russia’s needs would encompass BTC and more!

As of January 2022, you could only send ~$200k worth of Russian rubles at a time through BTC on Binance, vs $3.7M through BTC/USD and $2.9M through BTC/EUR on Bitstamp.

Even if you were sending ~$200K every minute & assuming the BTC/RUB market was resilient enough to immediately replenish the liquidity (very doubtful), you’re nowhere near $50B / day. Also, the total average daily volume over the last month for BTC/RUB has been just ~$11M…

SWIFT is one part of the equation here – banning some Russian banks from using SWIFT does complicate matters, but let’s not forget that Russia has had ample time to prepare, setting up direct banking relationships in Asia and elsewhere to get around correspondents.”

Read this next

Digital Assets

LMAX Digital onboards Bryan Christian and Cassandra Cox to lead sales

Institutional cryptocurrency exchange LMAX Digital continues to undergo a series of changes in its top ranks as it continues to build its presence globally. Two industry veterans, Bryan Christian and Cassandra Cox, have joined the group as its newest sales directors in Europe and USA.

Digital Assets

Cake DeFi introduces Ethereum Staking with 5% returns

Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.

Retail FX

FX trading rebounds 405pct at Saxo Bank in September

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

Retail FX

CMC Markets’ stock climbs as H1 revenue to climb +20%

CMC Markets PLC (LSE:CMCX) shares spiked 5.6 percent to 235p in Thursday’s trading after the firm’s trading update for the first half of its fiscal year 2023 revealed results at the high end of company projections.

Retail FX

Interactive Brokers doubles client accounts to 2 million in 24 months

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes took a slight step back in September, an indication that investor confidence is still fairly mixed over the past few months.

Digital Assets

DeFiChain tokenizes Walmart, Unilever, US Oil and Gas Funds

Bitcoin-based DeFi platform DeFiChain is opening up the opportunity for its users to trade crypto versions of Walmart, Unilever, US Oil Fund, and US Gas Fund.

Industry News

The B2Broker B2Core REST API Is Now Live

B2Broker has announced the release of its new REST API, which lets customers use B2Broker’s solutions and services for business purposes.

Executive Moves

CME Group taps Paul Woolman to lead Equity Index, Giovanni Vicioso to lead Crypto

“Our equity and cryptocurrency businesses have experienced tremendous growth in recent years, underpinned by strong customer adoption and continued innovation.”

Technology

Sumsub launches document-free KYC for users in India, Brazil, Nigeria and Indonesia

Sumsub has launched one click-KYC for users in India, Brazil, Nigeria and Indonesia in a move that allows businesses to instantly onboard over 2 billion users without requesting their ID documents.

<