Allied countries will block certain Russian banks from the interbank system in an effort to hamper Russia’s ability to make cross-border payments and try to stop the armed fighting in Ukraine.
The United States, Canada, the European Union and the United Kingdom agreed on Saturday to remove various Russian banks from the Society for Worldwide Interbank Financial Telecommunications messaging system (SWIFT), a move that will cut Russia off from much of the global financial system.
“This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.”they wrote in a joint statement issued by the White House. It should be noted that SWIFT is the highly secure network that connects thousands of financial institutions around the world. the world. The allies announced that the measure will help “collectively ensure that this war is a strategic failure for [el presidente ruso Vladimir] Putin”.
They also promisedrestrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of our sanctions“, and restricting the sale of “golden passports” that allow top Russian officials to avoid the brunt of sanctions already imposed.
Russian banks will be removed from SWIFT
The President of the EU Commission, Ursula von der Leyen, ad a total of five proactive measures against Russian authorities, beginning with the removal of an undisclosed number of Russian banks from the SWIFT messaging system.
The EU Commission said it will soon launch a transatlantic task force to ensure the effective implementation of all sanctions, whose main goal is to freeze the foreign assets of Russian officials, elites and their relatives. At the same time, they indicated plans to increase coordination against disinformation and other forms of hybrid warfare.
The news comes after North American countries and their European allies imposed a round of sanctions against Russia for its unprovoked attack on Ukraine. Nations have also sanctioned top Russian officials, including Vladimir Putin, in a bid to limit the finances of the president and his inner circle.
Operated by an independent company based in Belgium, SWIFT functions as an internal messaging system between more than 11,000 banks and financial institutions in more than 200 countries and territories. The support of the entire European bloc was essential to expel any country, such as Russia.
Some analysts have pointed out that Russia’s blockade of the interbank payment network could motivate the government to turn to digital currencies as Bitcoin due to its decentralization. “Removing Russia from SWIFT Will Force Them to Fully Adopt Bitcoin“commented the founder and CEO of Quantum EconomicsMati Greenspan, in a tweet. “This is NOT good for Bitcoin“, he emphasized.
…this is NOT good for Bitcoin.
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) February 26, 2022
Meanwhile, the move could have far-reaching global geopolitical implications. According Associated PressRussia previously stated that being kicked out of SWIFT would amount to a War declaration.
Article by Hannah Estefanía Pérez / DailyBitcoin
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