US Treasury 'Very Attentive' to Russia's Use of Cryptocurrency, Yellen Says

U.S. Treasury Secretary Janet Yellen has addressed concerns about Russia using cryptocurrency to evade sanctions. During her testimony before the House Financial Services Committee, Yellen acknowledged the potential threat, noting that while it may not be a significant issue now, it could become more concerning as sanctions intensify.

Yellen: We Are Very Attentive to the Use of Crypto

U.S. Treasury Secretary Janet Yellen testified before the House Financial Services Committee last week. During the hearing, Congressman Brad Sherman (D-CA) questioned her about Russia’s use of cryptocurrency and stablecoins to evade Western sanctions.

“The Russian central bank has urged the use of crypto to evade Western sanctions,” the lawmaker began, adding: “A stablecoin offers no particular advantage in that it’s stable, you can’t make money by holding it, and it usually doesn’t pay interest — certainly not the interest you get on money market funds. Its sole advantage is evading our sanctions and other laws, including tax laws, and I hope that in enforcing our sanctions on Russia, you will not facilitate that by facilitating stablecoin.”

Yellen replied:

We are very attentive to the use of cryptocurrencies and stablecoins. We don’t think it’s a very substantial thing that Russia is doing but as our sanctions bite more and more, it becomes a concern.

The Bank of Russia recently advised businesses to use cryptocurrencies and digital assets to mitigate the impact of Western sanctions following the Ukraine conflict. Russian Central Bank Governor Elvira Nabiullina acknowledged that payment issues are critical for the Russian economy and highlighted the role of new financial technologies in creating unprecedented solutions.

Russia’s trade relationships with China, India, the United Arab Emirates (UAE), and Turkey have faced difficulties due to sanctions targeting major Russian financial entities. Nabiullina stated: “New financial technology creates opportunities for schemes which did not exist before. This is why we softened our stance on the use of cryptocurrencies in international payments, allowing the use of digital assets in such payments.”

What do you think about the remarks by Treasury Secretary Jenet Yellen and the use of cryptocurrency and stablecoins to evade sanctions? Let us know in the comments section below.