Sanctions on Russia Block Access to SWIFT Network, Expose Fragility of Fiat Currency
No question exists regarding the complexities of war. It is never possible to win a war, as lives are lost, communities are displaced, and difficulties are felt in multiple ways. With the recent outbreak of war in Ukraine, various countries and companies are now increasingly imposing unprecedented sanctions on each other
As a result, the average Russian has suffered a catastrophic economic impact, as shown by the desperate runs to the banks to withdraw money, and the blocking of average businesses from accessing the SWIFT network. A similar difficulty is also felt on the Ukrainian side. When citizens flee war-torn areas, restricted or depleted cash and goods make it difficult for them to move or purchase goods as needed. The type of situation we’re seeing shows us how quickly and powerfully regulatory bodies and companies can remove parties from the financial system, and how fragile the traditional system of fiat currency is.
Blockchains Record Transactions, Pose Security Risk of Personal Data Leaks
Across borders, human tragedies like war, poverty, and the rise of authoritarianism are affecting us all. During the anti-lockdown peaceful protests, the Canadian government recently demonstrated what lengths it was willing to go to in order to gain compliance when it invoked the Emergencies Act.
We witnessed the suspension of the demonstrators’ bank accounts and the sanctioning of 34 cryptocurrency wallets by centralized cryptocurrency exchanges and trading partners. The Emergency Act allowed the government and corporate partners to freeze or suspend trucker accounts without due process, a court order, or a fair trial to prove their guilt. This is a dangerous precedent. Blockchain technology, upon which digital currencies are based, amplifies this danger – it records financial transactions forever, and anyone with the technical know-how can cross correlate data to expose your personal information. This is one of the reasons why governments around the world are so interested in creating their own digital currencies.
China, UK & Other Countries to Adopt CBDC to Regulate Crypto Usage
CBDCs are digital currencies issued by the central bank of a country, such as the Federal Reserve in the United States. CBDC aims to implement financial transparency (to regulatory bodies), provenance, and to combine the immutability of blockchain technology with the stability of stablecoins. But there is one very big problem. It will literally hold the keys to your wallet, and it will be able to see everything you do with your cryptocurrency.
Although it has already been implemented in China, it’s no secret that the United Kingdom has been considering the implementation of its own CBDC. This would allow them to gain access to the economic lives and decision-making of their citizens, which is in direct violation of their right to privacy. The Central Bank of Mexico plans to launch its own in 2024, and Canada and the United States are also considering the idea. Combining aspects like a social credit score or the ability to see all of your financial transactions creates unprecedented levels of financial lockdown and control. Freedom to transact in a PriFi manner is where the crypto industry is headed.
Financial Crypto Privacy Era to Give Rise to PriFi & Privacy Coins, Monero Leads Movement
We are in the midst of a transitional phase toward a better world with great technological potential. PriFi and privacy coins in general are catalysts for this shift. Privacy coins have stepped up where other cryptocurrencies have fallen short when it comes to financial privacy. As regulatory bodies, corporate entities, and growing geopolitical tensions reveal the fragility of both digital and traditional financial systems, people have begun to appreciate the value of their financial assets.
For people that want to stabilize their crypto-financial lives, protect their money from domestic and geopolitical upheavals, or retain control over their monetary transactions, PriFi options like Monero and Haven provide a secure, private option. Currently, the world needs a new era of financial privacy. Crypto investors who recognize the writing on the wall are adopting strategies that will help them protect themselves in the future.