Why Has Ukraine Turned to Bitcoin and Some Other Cryptocurrencies In the Current War?
2022-03-21 18:17:18
What Roles Did Cryptos Play in Ukraine?
Cryptocurrency played a unique role in the war between Russia and Ukraine by helping the government raise millions of dollars to back its war. At the beginning of the conflict, Ukrainian officials posted the addresses of two cryptocurrency wallets on their twitter accounts, providing donors with a direct donation address.
According to a report from Elliptic, more than $100 million worth of crypto has been raised. The majority of crypto donations came in the form of Bitcoin, Ethereum and the stablecoin Tether, which has been the Top 3 cryptos so far. By the way, at the time of writing the Bitcoin price live is $41,104.88. Returning to the topic, Why has Ukraine turned to cryptocurrencies, and how does the crypto make an effect amid the clouds of war?
Why Has Ukraine Resorted To Cryptocurrencies?
Firstly, it may be related to the characteristic of cryptocurrencies, that is, anonymity. Specifically speaking, cryptos can be sent and received anonymously, allowing organizations to transfer and raise money even if financial firms prohibit it or conduct a rigorous inspection on funds. According to Elliptic, raising funds is not novel for Ukrainian volunteer and hacker organizations, which had, in fact, raised $6,000 cryptocurrencies in 2020 and $550,000 in 2021.
“Cryptocurrency has proved to be a robust and growing alternative to traditional currency – especially when it comes to donations from other countries” Elliptic said.
Secondly, cryptocurrencies are less influenced by geopolitical or macroeconomic factors compared to Ukrainian hryvnia which suffered from the depreciation in the value of the as a result of inflation. Also, it typically takes less time through crypto transfers than bank wires that may take up to 24 hours to be validated between two countries.
How Does The Society React To Crypto's Role In Ukraine?
It seems that Ukraine’s attitude to currencies has aroused increasing attention of all countries to cryptocurrency. . According to Caroline Malcolm, head of international public policy and research at Chainalysis, the conflict between Russia and Ukraine is forcing governments to develop their understanding of cryptocurrencies and their regulation. According to a report from Gate.io, the only top crypto exchange with 1400+ coins, that Ukraine turned to cryptocurrencies in its war is beneficial to the crypto industry, which gives birth to proportionate and effective regulatory policies. For example, President Volodymyr Zelenskyy passed a law to provide a legislative framework for crypto platforms and users to operate in Russia. US President Joe Biden signed an executive order seeking further clarification and guidance on crypto regulation.
Cryptocurrency played a unique role in the war between Russia and Ukraine by helping the government raise millions of dollars to back its war. At the beginning of the conflict, Ukrainian officials posted the addresses of two cryptocurrency wallets on their twitter accounts, providing donors with a direct donation address.
According to a report from Elliptic, more than $100 million worth of crypto has been raised. The majority of crypto donations came in the form of Bitcoin, Ethereum and the stablecoin Tether, which has been the Top 3 cryptos so far. By the way, at the time of writing the Bitcoin price live is $41,104.88. Returning to the topic, Why has Ukraine turned to cryptocurrencies, and how does the crypto make an effect amid the clouds of war?
Why Has Ukraine Resorted To Cryptocurrencies?
Firstly, it may be related to the characteristic of cryptocurrencies, that is, anonymity. Specifically speaking, cryptos can be sent and received anonymously, allowing organizations to transfer and raise money even if financial firms prohibit it or conduct a rigorous inspection on funds. According to Elliptic, raising funds is not novel for Ukrainian volunteer and hacker organizations, which had, in fact, raised $6,000 cryptocurrencies in 2020 and $550,000 in 2021.
“Cryptocurrency has proved to be a robust and growing alternative to traditional currency – especially when it comes to donations from other countries” Elliptic said.
Secondly, cryptocurrencies are less influenced by geopolitical or macroeconomic factors compared to Ukrainian hryvnia which suffered from the depreciation in the value of the as a result of inflation. Also, it typically takes less time through crypto transfers than bank wires that may take up to 24 hours to be validated between two countries.
How Does The Society React To Crypto's Role In Ukraine?
It seems that Ukraine’s attitude to currencies has aroused increasing attention of all countries to cryptocurrency. . According to Caroline Malcolm, head of international public policy and research at Chainalysis, the conflict between Russia and Ukraine is forcing governments to develop their understanding of cryptocurrencies and their regulation. According to a report from Gate.io, the only top crypto exchange with 1400+ coins, that Ukraine turned to cryptocurrencies in its war is beneficial to the crypto industry, which gives birth to proportionate and effective regulatory policies. For example, President Volodymyr Zelenskyy passed a law to provide a legislative framework for crypto platforms and users to operate in Russia. US President Joe Biden signed an executive order seeking further clarification and guidance on crypto regulation.
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