Russian President Vladimir Putin has signed a new law allowing him to take Russian citizens’ bank deposits.
This only applies to “officials’ bank accounts if the sum of the deposits surpassed their disclosed revenues over three years and was proven to be illegal.”
However, it is unclear what the law actually says, or whether any bank accounts in Russia are safe, given that markets believe the government is on the verge of default.
The cost of insuring against a Russian default has skyrocketed, rising more than 10 times from 100 at the start of the year to close to 1,700 currently.
Its indicates that Russia has a 69 percent likelihood of defaulting, a first for a country of this size in decades.
Exxon Mobile, BP, Shell, and Equinor, among others, have all pulled out of Russia as a result of such an event, potentially triggering hyperinflation.
This might restrict oil and gas production in the country, while defense spending will skyrocket as a result of the Russian ruble’s 50% drop in two weeks.
Bitcoin would be a vital hedge in these circumstances as an asset outside of the banking system and national fiat, as it is a bearer asset that cannot be seized if it is self-custodied or held outside the country.
As a result, as Russia faces economic collapse, crypto awareness may rise.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews