Bitcoin, Ether, and USDT are the most popular digital currencies in Ukraine, while cash transactions are nearly extinct. As the Russian invasion increasingly strangles the country’s financial stability, Ukraine is migrating from currency to crypto transactions.
Bitcoin, Ether, and USDT are the most popular digital currencies in Ukraine
Ukrainians are turning to BTC, Ether, and USDT to move assets as cash usage diminishes and fiat availability decreases. Furthermore, as a show of solidarity, Bitcoin donations are arriving in their wallets from all over the world. How much will crypto have an impact on Ukraine’s resistance?
The global network of crypto users provides a silver lining in this grim scenario. In the previous week, the Ukrainian army has received more than $37 million in cryptocurrency donations. Additionally, crypto exchanges have reported large donations of Bitcoin, Ethereum, and other cryptocurrencies into the country. According to the Prime Minister, the country has recently begun taking Dogecoin and Solana donations.
Even high-ranking officials from the state have joined the crypto contribution campaign. On Ukraine’s Twitter account, for example, the country’s Deputy Prime Minister shared BTC and Ethereum addresses. Furthermore, when Vitalik Buterin, co-founder of Ethereum, announced that the accounts were a hoax, the Ukrainian authorities validated their security.
The implementation of martial law in response to Russia’s invasion coincided with the decision to restrict citizens’ ability to transact in fiat currency. According to the bank’s announcement, access to the foreign currency markets has been restricted, and cash withdrawals have been capped. The prohibition on the issuing of foreign currency from retail bank accounts was the final nail in the coffin.
Because the restrictions are having a negative impact on Ukrainians’ life, a big number of people are turning to cryptocurrency as a solution. According to Kuna, a local cryptocurrency exchange, the use of Tether’s USDT has increased among the local populace.
Michael Chobanian, the CEO of Kuna, told journalists that trust in the financial sector and the local currency is now poor. “The vast majority of individuals have no other option except to invest in cryptocurrency.”
Some people are still suspicious of the use and legitimacy of cryptocurrency in 2022. Recent events, however, have proven them mistaken. Cryptocurrencies have emerged as a vital source of funding, with the potential to affect the outcome of the Ukrainian conflict. Peace is unlikely to be achieved by cryptocurrency donations. However, once peace is restored, they will be able to modify the world’s distorted opinion of them.
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