Putin Issues an Order Seizing Bank Deposits as Default Approaches
Reuters and the BBC, citing Russian state television, say that Russian President Vladimir Putin has approved new legislation authorising him to take Russians’ bank savings.
According to Reuters, this is limited to “officials’ bank accounts if the total of their deposits exceeded their disclosed revenues for three years and was determined to be unlawful.”
However, it is unclear what the legislation states precisely, or even if any bank accounts in Russia are secure, given market reports that the nation is on the verge of collapse.
The cost of insuring against a Russia default has risen more than tenfold since the start of the year, from about 100 to close to 1,700.
Its indicates that Russia has a 69 percent likelihood of defaulting, a first for a nation of this size in decades.
Such an occurrence might result in hyperinflation, if a number of oil firms, including Exxon Mobile, BP, Shell, and Equinor, withdraw from Russia.
This might result in decreased oil and gas output in the nation, while military spending will skyrocket as a result of the Russian ruble’s 50% collapse in two weeks.
Bitcoin, as an asset outside the banking system and national money, would be an essential hedge under these situations, since it is a bearer asset that cannot be seized if self-custodied or kept outside the country. Thus, as Russia faces economic collapse, cryptocurrency knowledge may certainly increase.