While massive protests continue to take place in Belarus after a controversial election in which President Alexander Lukashenko extended his term in office, questions are emerging how Belarus will deal with potential sanctions from the US and the European Union and how cryptocurrencies such as Bitcoin (BTC) and Ethereum ( ETH) can help to circumvent this.

An article published by the Russian company RBC indicated that the use of cryptocurrencies might not be an effective option for the Belarusian government to overcome the financial sanctions that the European Union and Washington may impose on Minsk. According to The Guardian, the European Union is pressing ahead with sanctions against Belarus.

Valery Petrov, vice president of market development and regulation at the Russian Association for Cryptocurrency Industry and Blockchain, said in the article that using cryptocurrencies is a “realistic option” to avoid sanctions. He made it clear, however, that this is only possible “if it does not conflict with external and internal legislation”.

Belarus has shown a cryptocurrency-friendly stance as recent developments in the industry across the country have shown that the industry is a significant business opportunity.

In May, the Belarusian authorities announced that they would see digital technology as a priority and were preparing a resolution on the digital economy for the OSCE meeting in Berlin.

Belarus also drew up a bill in July to address high-tech areas of information technology, including blockchain technology and cryptocurrencies, with the hope of attracting international investment in technologies that were previously banned or deemed too risky.

Petrov referred to the Venezuela and Iran case, where he said the use of cryptocurrencies to manage economic crises or circumvent sanctions proves that cryptocurrencies are only a “moderating” solution.

Even other experts like Nikita Zoborep, a Russian analyst at Bestchange Cryptocurrency Exchange, believe this could just be a “first aid” solution to an economy that could be hit hard by sanctions.

However, he noted that IT infrastructure is “more developed and ready” than other countries, and Lukashenko may still consider it an option.

Source: CoinTelegraph

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