Rising tensions in the Middle East and the looming threat of global war are expected to drive more sanctioned regimes such as Russia, Iran, and North Korea to adopt Bitcoin over traditional fiat currencies, according to Slava Demchuk, CEO of compliance and blockchain forensics firm AMLBot. “Russian businesses are utilizing crypto assets for cross-border transfers, sanctions evasion, and money laundering, ” Demchuk claimed. He added in an interview with Cryptonews, “We can anticipate that the G7 and Western countries may introduce new regulations targeting the crypto sector to close loopholes that allow Russians to skirt sanctions. ” This shift toward crypto for sanctions evasion follows sanctions on Russian banks and their removal from the U. S. -linked SWIFT international payment network. Dacian Cimpean, digital marketing expert at decentralized apps platform MultiversX, noted that instability pushes actors toward safe-haven assets. He pointed out that oil prices surged beyond $100 per barrel at the outset of the Russia-Ukraine conflict in 2022, fueling inflation and prompting global monetary policy adjustments. “Digital assets like Bitcoin are sometimes perceived as alternatives to traditional safe havens, drawing investors during crises, ” Cimpean told Cryptonews. “This perception is noticeable in countries facing economic uncertainty, where citizens often turn to cryptocurrencies to safeguard their wealth. ” He further explained: > “However, elevated geopolitical risks can also bring about stricter regulatory measures and possible restrictions on crypto dealings, as governments seek to prevent capital flight or sanctions circumvention. Such actions can weaken market confidence and cause volatility. ” The BRICS+ coalition—mainly Brazil, Russia, India, China, and South Africa—is considering developing a collective central bank digital currency (CBDC) to accelerate their de-dollarization efforts. This ambition to reduce dollar dependence via crypto faces two significant challenges: the withdrawal of M-Bridge, the Dutch platform these countries intended to use, and U. S. President-elect Trump’s threat to stifle the initiative. > The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U. S. Dollar or, they… — Donald J.

Trump (@realDonaldTrump) November 30, 2024 Back in 2020, Venezuela turned to a government-issued crypto token called Petrodollar to manage the impact of U. S. sanctions on its troubled democracy. Meanwhile, North Korea, stunned by sanctions targeting its nuclear program, resorted to hacking crypto funds to bolster its defense budget. The UN reports that between 2019 and 2020, the isolated nation raised $2 billion through cybercrime. These cases illustrate how cryptocurrency has become entangled in geopolitical conflicts. However, Bitcoin’s status as a safe haven has been inconsistent. For instance, BTC fell 16% amid the August 5, 2024 stock market crash that affected crypto markets, whereas gold declined just over 1%, showing greater resilience. In April, despite rising demand for safe-haven assets amid escalating Middle Eastern conflict, Bitcoin’s market value dropped 6%. Conversely, gold increased by 8%, and the U. S. dollar also strengthened during the same period.