In the middle of the conflict between Russia and Ukraine, cryptocurrencies have taken on special relevance both for their users and for the governments involved. This digital money has become a kind of lifeline for many ukrainians, due to the restrictions to make use of their traditional money through cards and ATMs.
Cryptocurrencies in the conflict between Russia and Ukraine: A saving alternative
The ease and portability that cryptocurrencies represent have made them assume a leading role in the conflict that is currently taking place in Ukraine.
The tensions have caused the ukrainian bank to take action, including some restrictions that have complicated the use and administration of the money of the country’s inhabitants.
The story by Artyom Fedosov, a ukrainian photographer, it was much worse. Although it was complex not to be able to access his money due to the restrictions imposed by the banking system in his country, the situation is aggravated when he is a tourist and without the possibility of returning to his place of origin.
</ span> It was at that moment when Fedosov found his great ally in cryptocurrencies, why? </ span>
– Ease of exchange: it is simple to change from the official ukrainian currency to cryptocurrency, be it Bitcoin, Ethereum or the you want.
– Transactional offer: in the market there are more and more possibilities to access products and services by paying through cryptocurrencies.</span >
– Simple portability: you can take cryptocurrencies everywhere. You have the possibility of moving around any country and place with an amount of money, in this virtual case, without the possibility of being confiscated or paying taxes for it.
Ukraine and its great ally: cryptocurrencies
Beyond the benefits offered by cryptocurrencies vs. traditional money, there was also an event that marked a before and after for crypto in Ukraine. In the midst of the crisis, the ukrainian government has managed to donate around $60 million in cryptocurrency simply by posting their Bitcoin and Ether wallet addresses on Twitter.
Although the ukrainian government viewed cryptocurrencies favorably and considered them an important part of economic development, this fact made them more relevant to the point that the President of Ukraine Volodymyr Zelenskyy will sign a law that legalizes the use of cryptocurrencies in the country.
According to the Digital Trends web portal, the project creates: “the conditions for the launch of a legal market for virtual assets in Ukraine”. It also allows the country’s banks to open accounts for crypto companies and appoints the National Bank of Ukraine and the National Securities and Stock Market Commission as financial surveillance for the sector.
In conclusion, this model of virtual money -although it is not new- is still a subject that is largely unknown, it is setting a precedent in the midst of an international crisis . Demonstrating that it competes with traditional money and that it has greater facilities, becoming a great alternative for many people.