Cryptocurrency Becomes A Mainstream Financial Mode For Russia & Ukraine
Amidst the current war between Russia and Ukraine, cryptocurrency has emerged as a mainstream financial medium. More than millions of dollars in the form of cryptocurrency have been transferred to Ukraine to support its army in the war. It is interesting to see that the Ukraine Government has started to solicit help in cryptocurrency.
The currency has been regarded as a part of the world’s financial system, However, with the war, the crypto market has transformed into a strong financial weapon. Ukraine’s general people have turned to crypto as their main financial medium.
The rise of crypto amidst the war has occurred due to the limitation in accessing banks or other institutions. Because of the chaos due to the war, it has become impossible to depend on the banks. For this reason, the Ukrainians are turning towards the best alternative to the traditional financial institutions.
Cryptocurrency is a financial system that is free from the dominance of any government. This aspect of crypto has led Ukrainians to rely upon the currency. The best thing about crypto is its immunity. The currency cannot be censored or frozen by any government. Moreover, to access crypto one needs to use an ID. These facts have played an essential role in elevating crypto as the main mode of financial transaction amidst the war.
However, despite the plethora of advantages, one cannot deny that the crypto market has its limitations. To use this currency in-depth technical knowledge is required. Due to this, some people may find the notion of cryptocurrency crippling. Also, those who don’t have an existing crypto account will find it difficult to set up one during the war.
While cryptocurrency has come as a financial ally for the Ukrainians, Russia is also depending on crypto to reduce the consequences of Western sanctions. The current war has shown the powerful side of digital currency. At this moment both the warring countries are in the possession of a medium that allows them to move money without any hassle.
The main setback of crypto lies in the absence of a controller. Because no one monitors or controls the financial system, it can assist Ukraine in crowdfunding their army. It can also help Russia to escape the results of the Western sanctions. The absence of curation makes crypto a valuable weapon for both countries. No one can limit the use or reduce crypto’s power.
However, despite the symbolic strength of crypto market, how far it can affect the warring nations remains to be seen. As of now, Ukraine has succeeded in collecting huge donations in the form of cryptocurrency. Yet, the money may not be too helpful to the Ukrainian army.
Russia on the other hand has gained a lot of cryptocurrency as a result of ransomware attacks. However, despite the event, Russia is still severely dependent on traditional financial transactions. To simplify the matter, one can say that Russia is still waking up to the concept of digital currency.
As both the warring nations gear up to gather their financial weapons, Coinbase has announced that it is trying to curate cryptocurrency as the war unfolds. The largest US crypto exchange has made a move to block the IP addresses of the sanctioned areas. Coinbase is also working with intelligence analytics to track the networks of the threat actors.