Crypto a weapon in the Russia-Ukraine war
In the first major geopolitical conflict of the crypto era, What role will cryptocurrencies will enable and play is yet uncertain?
While crypto activists are mobilizing, on the behalf of the Ukrainian people there is fear that Russia will use crypto to reduce the effects of the sanctions been imposed on them.
Washington post comments :
The role of crypto in the Russia Ukraine conflict has been analyzed. Both countries have embraced digital currency which can easily move large sums of money across international borders.
"No one can really prevent it from being used in either way"
There is no central controller of crypto, who can impose its rules, ethics on its uses. Crypto can be a crowdfund for the Ukrainian army or to the other side Russia evade sanctions." Tom Robinson chief scientist and co-founder at the crypto analytics firm Elliptic.
Ukraine has been ranked the top adaptor of crypto in Europe
It was legalized in the country in September and has since been embraced. And to support the country crypto donation have been coming in Sam BankManfred, Chief executive of crypto platform FTX, tweeted last week that "They gave $25 to each Ukrainian on FTX.
What impact this fundraising will have?
To which extent there will be an impact on Cryptocurrencies?
Vitaliy Deyneg. a Kyiv IT professional may have raised $400,000 in crypto. What does that really mean in front of the $640 million in weaponry agreement that the Ukrainian army has received from the US?
If you can not buy the daily use commodities through crypto, then it is like having the currency of the 12th century in your hand.
Russia on the other hand has become a hub of illicit crypto activity.
According to Chainalysis. Crypto businesses have made more than $700 million dollars in digital assets from criminal activity over the last three years which could be one way of avoiding sanctions.
Summary
The sanction announced by the US does not currently cover energy payments but instead focuses on banks which may mean crypto-related circumventions could be unnecessary. Plus crypto may not be as effective a solution as it may seem. The problem is off-ramp. you could theoretically move all the payments you want. but until you can buy a burger down the street, there's not much you can do with the money."
Sources: Washington Post
My other articles :
My Introduction
Feet body language Pt 1
Feet body language Pt 2
My friend, you gave very good information about crypto in Ukraine and Russia, I did not know that crypto was accepted in Ukraine to this extent. And that digital currencies can do so much to help these two warring countries.