Approximately $120B US dollars were pumped into BTC bitcoin in just a few hours on Feb. 28th. Some of that amount originated with Russian oligarchs and certain banks converting rubles into bitcoin, before Russian capital controls may take effect.
Why bitcoin? Perhaps because the means to access $$ sanctuary in Switzerland or elsewhere has largely been eliminated for Russian oligarchs and banks. A related article appears here:
Wealthy Russians Behind the Bitcoin Pump? https://zycrypto.com/bitcoin-whales-are-on-the-increase-over-the-last-7-days-wealthy-russians-could-be-behind-this/
[Article here from the same day, about the Bank for International Settlements (BIS) and how it is not neutral as often claimed (in fact since 1930 the BIS has been known as the “Nazi Bank”) and will not cooperate with Russian banking interests going forward: Link https://www.reuters.com/markets/europe/global-markets-bis-urgent-2022-02-28/ ]
Now, our source says that less than one-half of the $120B US converted into BTC was from Russian oligarchs and assorted banks with ruble reserves, in their move to dodge future capital controls imposed by Russia. The source says assets wrt trade amounts sequestered/ contracted (ie euro $) for oil, gas, commodity trades etc to Russia by particular governments (Germany?) have been liquidated into bitcoin.*
It’s unclear why those funds would be liquidated into bitcoin by a government? And not into gold? One reason could be a desire to prevent the gold market from surging. Also, this gets to the heart of the matter, where Russia insists that escrow accounts be settled in rubles. Those escrow account in rubles are simply forfeited by the west. That’s what happened on the 28th, when Russia announced capital controls, while at the same time the West imposed sanctions. With such devaluation pressure on the ruble, the bank or government holding the rubles was forced to convert.
Even with an accounting issue, that’s where bitcoin comes in. Since contracts may be settled in advance for a commodity, leaving a surplus of funds in that currency to be laundered with regard to contracts not realized, the balance of trade is maintained accountably… yet via bitcoin unaccountably!** The foregoing is of course speculative, but we live in very corrupt times where such options are available — especially to highly criminalized governments and their central banks.
Now, does any of the above relate to SWIFT? Well, sort of. Although SWIFT is only a payment messaging system, once SWIFT is unavailable that’s going to strand a lot of funds, in a variety of foreign exchange scenarios. To put simply, think of all the escrow and reserve accounts that could potentially be stranded, when that payment messaging service becomes unavailable. Even so, for those accounts to total $118B US laundered into bitcoin as we saw on Feb 28th is not representative of just Oligarchs converting, or Apes-Whales for that matter either.
Bottom line is that not just Wall Street is interested in bitcoin. Governments have been and will use bitcoin for laundering — not just Oligarchs. That explains why all the noise about regulating bitcoin from von Der Leyen, Biden, Yellen etc etc etc and other talking heads, only results in tweeks to crypto regulation affecting punters and exchanges. (NB: Hint: Governments don’t use exchanges for their dodgy crypto deals!]
So, these very large BTC transactions are peer-to-peer and do not involve exchanges at the front end, which is most interesting. And it’s not just Wall Street hyping bitcoin. Some fairly large banks leverage bitcoin too, for such reasons. We know the Security State has a backdoor into crypto as well, via the Colonial Pipeline affair, Razzlekhan Bitfinex, Gerald Cotten, MT Gox and many other examples, where crypto and skullduggery is involved. Of course governments have the contract on that skullduggery… just as they monopolize militarism and violence.
Finally we arrive at fascinating analysis regarding factual governmental use of bitcoin for laundering, and/or particular banks leveraging crypto so they can evade their own government’s (or other) capital controls! As time goes on, and the fact becomes apparent that governments are involved in laundering certain transactions via bitcoin, it will be troublesome for governments to remain unaccountable about their crypto; and for them to deny corruption and theft via same on a very large scale. That relates too, to what’s known about a certain DARPA contractor being involved in the origin of the blockchain ledger whitepaper at the time of the initial financial collapse of the United States.
Another note. Novus Confidential happens to know that the SWIFT people are not at all happy about the high profile they’ve recently achieved, through no fault of their own. But SWIFT has lied about being a “neutral” payment messaging system, that may not be weaponized or used as a political tool. Yes. That’s an outright lie. As we have seen where Iran is concerned. But lies are what we expect from the Coup Class, after all. And even though lies are what we get, they are not what we deserve… and the reckoning will be harsh one day.
*Where $120B+ in rubles/related transactions is just sloshing around the system, and can be virtually converted in a just a few hours, just as the Fed games bank REPO loans to the tune of trillions every night: https://fred.stlouisfed.org/series/RRPONTSYD/
**Put differently, the creditee loses all future claim to such funds as the destination is opaque and unaccountable; while the creditor’s books are massaged to pass muster.
Addendum: Since November of last year Wall Street interests have engaged in a structured demolition in bitcoin, supposedly related to the Fed’s proposed ‘tightening’ — or more accurately “reduced accommodation” as the crooked Fed lingo puts it. With the Ukraine crisis pressuring the Ponzi, it’s likely the Fed will continue to maintain “rounded heels” (stay loose) which may benefit the quasi-ponzi that is bitcoin. And as we see right now, banks and governments are dancing the crypto tango. So it’s possible Wall Street flash-trash-cash that poured out of crypto then, could flow back in. And Cathie Wood can once again be a de facto darling of CNBC and Bloomberg. Now, can we think a few more months ahead than that?? 🙂