We can hope that financial sanctions will eventually make a difference in bringing an end to the conflict on Ukranian soil. But is there hope that war donations via Bitcoin and other crypto activity have the potential to bolster the lives of the Ukranian people with more immediacy?
After Russia started the war, the world stood still – world leaders have been mostly indecisive and wishy-washy about how to respond. The crypto markets, however, after hitting a one-month low yesterday, rebounded with a 4.2% increase in the global crypto market cap in 24 hours. Following the announcement that the U.S. would block five of the biggest Russian banks and freeze all assets they hold in America, worth over $1 trillion, Bitcoin recovered most of its losses.
Ukraine Bets On Tether
The stablecoin Tether is trading above its peg on the Ukrainian exchange Kuna as Russia begins its invasion of the Eastern European country. Ukraine suspended digital money transfers in the country as part of its emergency plan, which has stressed many citizens.
The premium speaks to economic desperation among Ukrainians, who are trying to ensure the security of their funds – and that goes especially for those fleeing the country and withdrawing their wealth en masse.
On the popular Ukrainian cryptocurrency exchange Kuna, the price of USDT jumped by almost 5% in the past 24 hours to ₴32 Ukrainian hryvnias (UAH), or the equivalent of $1.10 USD. Yesterday, Tether trading volumes exceeded ₴8.5 million, equivalent to about $290,000, per Coingecko.
Tether has not been alone in soaring in popularity. Overall, there has been a surge in interest in cryptocurrencies in the country. Since the Ukrainian government has suspended digital money transfers as part of its emergency measures, the citizens have turned to cryptocurrency. According to CoinGecko, the volume of Bitcoin and other cryptocurrencies traded on popular Ukrainian exchange Kuna surged by more than 200% earlier today. Trading volumes on Kuna hit a record high today of $4.8 million, the highest since May 2021.
The Eastern European country has been supportive of crypto trading and mining, aiming to become the crypto capital of the world. As tensions with Russia escalated over the past few years, Ukraine kept a strategic eye on crypto regulation. Just last week, the Ukrainian parliament legalized Bitcoin and other cryptocurrencies. However, the country has not made Bitcoin a legal tender. The country was also reportedly on the brink of launching its own digital currency. The Eastern European country wants to use crypto to combat Russian influence and to be viewed as a crypto hub by the global community.
Bitcoin Donations For War Soar
In addition to this, reports have come out saying that after Russia declared war on Thursday, $400,000 worth of Bitcoin donations were made to Ukrainian military groups in one day. According to new data from blockchain analytics firm Elliptic, the amount was donated to Come Back Alive, a Ukrainian non-governmental organization supporting the armed forces.
Considering the current geopolitical climate in Eastern Europe, crypto markets and cryptocurrency applications will now play an indirect role in the conflict – which will be fought on many fronts, including economic ones. Digital currency is being used not just for investments, but also for political interests, emergency money, crowdfunding war efforts, and much more.
Via this site.