Cutting Russia’s Access to SWIFT could be a Huge Boost for Bitcoin

The Russian Ruble (RUB) dropped 22% yesterday. Since Vladimir Putin began his pre-invasion troop buildup, his nation’s currency has lost nearly a third of its value. Now, the West is threatening to cut them off from the SWIFT network. What does that mean? Don’t sell any of your Bitcoin. It’s about to get a huge boost from this action.

For those new to this, SWIFT is a global, interbank messaging system that is used to transfer money between financial institutions. It stands for the “Society for Worldwide Interbank Financial Telecommunications,’ a title that screams “Good Old Boys Network.” Its intent is to safely facilitate electronic and credit card payments between banks.

SWIFT is an antiquated system that is controlled by the world’s wealthiest nations. The threat to “cut off Russia” from the network is the latest example of this. Does Putin deserve to be sanctioned for his actions? Absolutely. Should other nations have the power to create an economic crisis for the Russian people with the click of a switch? Not in my book.

Blockchain Technology has Made SWIFT Obsolete

Putting aside the moral and humanitarian offenses of the Russian president, Vladimir Putin is not a stupid man. He’s supremely intelligent, calculating, and weighs every action and consequence carefully. He knows this is coming and doesn’t care. Ten years ago, it would have been devasting. Living without SWIFT today is easy. We have Blockchain.

Who needs an interbank messaging system when we have blockchain technology that can facilitate crypto transactions without interference from any government? The wealthy elite can’t interfere with it. Nations can’t sanction it. Blockchain belongs to the people. Those who don’t believe that are about to get a very rude awakening.

Here’s an interesting stat. The US dollar, Euro, Japanese yen, and Swiss franc all started the week Monday with a slight dip in value. Bitcoin (BTC) rose 14.52%, going from a Friday close of $37.7K to a Monday close of $43.2K. Someone’s paying attention. Estimates of a $100K peak in 2022 are starting to look better. A SWIFT ban on Russia might put us over the top.

Russia Controls $214 Billion in Cryptocurrency

Nations that were once empires always aspire to return to their former glory. Russia has been preparing for this moment for a long time. According to an article published in Forbes last week, the Russian people own more than $214 billion in cryptocurrency. Add that to the land grab in Ukraine, a massive farming nation that can feed 600 million people.

Do you think Vladimir Putin or the Russian people care about SWIFT? It’s a sanction with no teeth, just like the semiconductor ban from the US. Cutting SWIFT access will cause payment defaults, reduce cash reserves at the Kremlin, and create some short-term hardships. The Ruble will crash and burn. Bitcoin will emerge as their national currency. You heard it here first.

Okay, maybe that’s a bit extreme, but anything is possible. The bottom line for investors is that crypto in any form right now is likely to yield decent returns in the next few months. Bitcoin is more stable than the fiat currencies from the nations involved in this conflict. It will take center stage at some point this year. Start filling your wallet. The time has come.

 

 

 

 

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About the Author

Cutting Russia’s Access to SWIFT could be a Huge Boost for Bitcoin

Kevin D. Flynn

Kevin D. Flynn is a former financial professional and founder of AdvisorScale Financial Writing. He lives in Leominster, Massachusetts with his wife Evelyn, two cats, and nine wonderful grandchildren.