It can be said that this is the time when cryptocurrencies are at the center, when international conflicts have been happening all over the world. But it can be said that this is the first time crypto has fallen into such a situation, to the point that many have called the conflict between Russia and Ukraine the “the world’s first crypto-related war”.
People use Bitcoin and other cryptocurrencies for the purpose of conducting cross-border transactions with relative anonymity, which is largely free from state oversight and unregulated by regulators. regulations of international banks. Often, those ethos inspire debates about privacy, freedom, and community. But at a time of war, the anarchist culture of crypto becomes less obvious.
As governments around the world use the global financial system to impose sanctions on Russia over its attack on Ukraine, cryptocurrencies are one of the ways for Russia to redress the consequences. At the same time, digital currency also plays an active role in helping the Ukrainian victims of the Russian aggression.
CRYPTO – TIMELY SUPPORT FOR UKRAINE IN TIMES OF CRISIS
Immediately after Russia attacked Ukraine, Western crypto activists put together an invitation to donate, in which they used a form of crypto payment after the government set up a digital wallet. to receive currencies including Bitcoin and Dogecoin. “One of the best things we can do as an industry is figure out how to support the Ukrainian people and their resistance,” said Ryan Selkis, founder of crypto firm Messari by cryptocurrency donations. To date, the Ukrainian government has spent more than $15 million in cryptocurrencies it received from the fund.
As for the people, many have tried to flee the country and take cryptocurrencies with them in the hope of converting them back to fiat upon arrival safely. Some people think that they will use cryptocurrencies for storage when Ukraine’s economy collapses. Meanwhile, their central bank suspended cash transfers when Russia began the invasion and is blocking Ukrainian nationals from withdrawing foreign currency and a variety of transactions.
However, using cryptocurrencies in times of war is not easy. There are thousands of cryptocurrencies and not all of them work equally. Cryptocurrency may be most useful to those who already own it. In Ukraine, the number is in the millions as the country has boosted the cryptocurrency industry in the past few countries.
CRYPTO – A MEANS OF AVOIDING RUSSIAN SANCTIONS
Many countries have made it difficult for Russia to enter, but in some ways, this raises concerns that Russia could use cryptocurrencies to avoid sanctions and move money away undetected. Normally, if sanctions are meant to prevent countries and businesses from doing business with Russia, then cryptocurrencies would be a way to get around them. The US government was worried that cryptocurrencies could soften the impact of sanctions. In the past, Iran has used Bitcoin mining to bypass trade embargoes.
However, until recently, they have not found any evidence that any Russian individual or organization has used cryptocurrencies to circumvent sanctions. At the beginning of the conflict, the amount of Bitcoin traded in rubles spiked. However, observers suggest that Russian retail investors buy the cryptocurrency as an alternative to the ruble after its value plummeted. Since then, Russian cryptocurrency transactions have continued and are small in volume.
CRYPTO IS A PART OF THE WAR
Many see war as an opportunity for digital currencies to prove their worth. Rallying in support of Ukraine and trying to understand a role for cryptocurrencies, it is these supporters who have led to the conflict between Russia and Ukraine called “the world’s first crypto-related war”.
If cryptocurrencies eventually soften the impact of sanctions, this could add further regulatory pressure on the industry. Governments are trying to thwart attempts to use cryptocurrencies to launder money. At the same time, they are also wary of the possibility of cryptocurrencies reducing the efficiency of things.
Up to this point, we cannot predict how cryptocurrencies will turn out in international conflict, but we can understand that Bitcoin and other cryptocurrencies are an essential element in the future. global economies, whether it has positive or negative effects.
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