“This is the first time in the history of bitcoin that it has been used in a conflict”, says a cryptocurrency expert

The magazine reporter Capital and cryptocurrency specialist Grégory Raymond spoke on franceinfo about these currencies which are inviting themselves into the war in Ukraine. “This is the first time in bitcoin’s history that it has been used in a conflict, he explains. Bitcoin is neither pro-Ukrainian nor pro-Russian…”

franceinfo: Can cryptocurrency serve as a safe haven in the face of sanctions?

Gregory Raymond: Since Monday, people have been jumping on bitcoin to protect themselves against the depreciation of the ruble, which lost up to 30% on Monday. At the same time, bitcoin took 15%. As a store of value alone, bitcoin makes sense. It also makes it possible to circumvent international sanctions. People were afraid that bank cards would stop working or that the government would impose a limit on withdrawals. People trained in cryptocurrencies have every interest in putting part of their savings into it to plan for the future.

Can the Russian government and institutions use it?

Theoretically the government could, to circumvent the Swift system, from which it was unplugged. But it seems complicated: Putin had time to prepare for the sanctions and nothing concrete was ever done to use bitcoin. This could serve as an alternative if the crisis lasts. But in the long term, it doesn’t really lend itself to big transactions like a state does. All bitcoin transactions are done on the blockchain [chaîne de blocs, un immense registre public réputé infalsifiable, qui contient les détails de toutes les transactions] and everything is transparent, and a State needs discretion.

The Ukrainian State receives donations in cryptocurrency…

Roughly $27 million was sent to government-created crypto receiving addresses, and $51 million in total through NGO-led initiatives. We learned this morning that the Ukrainian government was going to do an AirDrop [dispositif de partage de fichiers de proximité sans fil] on people who donated cryptocurrencies, to reward the donors of this action. Most NGOs that recover cryptocurrency deflect funds. They will be used for humanitarian work, even to buy weapons. But concerning the government, they do not say it, they can potentially do everything with it. For me this poses a problem.