It’s exactly like that, but that was always the most likely result and hardly a surprise. The sanctions are meant to drive a wedge between the regime and the people.

Hmm if only there was an economic system or currency that could be used outside the control of authoritarian governments...

I wonder what we would call it.....

The USD - crypto is an amazing tool for authoritarian regimes looking to evade sanctions. Assuming that's where you were trying to go, you totally misunderstand the problem. People in oppressive regimes can have all the crypto in the world but, if every time they use it to buy food, there's a guy with a gun who takes it for the regime, then it's even more useless than it's normal Monopoly money status.