“Using crypto to sidestep sanctions at any large scale will be difficult, though not impossible,” added Jon Venverloh, COO of the cyber-infrastructure company Hypernet Labs that is helping build tools for a Web3 transition.
“Blockchain tracking capabilities are advanced enough that it would be relatively easy for the U.S. government to follow the money if the Russian oligarchs try to turn their fortunes into crypto,” Venverloh told The Street Crypto.
Venverloh said that some digital currencies like stablecoins, which are pegged to fiat currency or other stable assets, could easily be shut off, making them ineffective as a channel to bypass sanctions.
“It’s still very much a question whether crypto will be effective in this regard, especially if it comes to large-scale transactions by governments, which only the largest exchanges have the liquidity to handle,” Venverloh said.
Read the full article from The Street Crypto here.