ECB Doubts Crypto’s Sanction Role Amid Ruble Crypto Trading Dip

European Central Bank (ECB) President Christine Lagarde shared her concerns on the growing use of cryptocurrencies to dodge sanctions against Russia over the conflict in Ukraine. This, despite the continued diminution of the ruble-denominated crypto volume.

Earlier this week, the ECB chief said she was “most concerned” about the high volume of Russian rubles being converted to cryptocurrencies following the country sustaining a series of sanctions over its aggression towards Ukraine.

Lagarde insisted crypto assets are being used “to circumvent the sanctions that have been decided by many countries around the world against Russia and a particular and specific number of players.”

ECB president also warned the community, saying:

Here in Europe, we have taken steps to clearly signal to all those who are exchanging, transacting, offering services in relation to crypto assets that they are being accomplices.

Meanwhile, a recent report claimed that crypto trading conducted in rubles on various exchanges continues to plummet.

The volume for crypto trading in rubles is currently at around $7.4 million, half from its recent peak at around $70 million two weeks ago, according to the report. The current trading volume only counts as a fraction of the global volume.

The source also tapped crypto data analytics provider Kaiko, which showed activities in ruble-denominated Tether stablecoin to be down by about $38 million and is now valued at less than $5 million.

Notably, the Tether stablecoin is the most popular ruble trading pair.

Regardless of this drop, the ECB will continue creating a “digital euro” to prevent other players from capitalizing on digital assets. This development is also in response to the growing shift to cashless transactions. The central bank said the project will be completed by 2024.