Geopolitical turmoil that, in one way or another, made Start Trading Bitcoin serves as an instrument of financial exchange.
For many, a reality so complex that it is sometimes incomprehensible since Russia was about to ban the use and MANAGEMENT OF DIGITAL CURRENCIES in the country, but after being their only means of financial support, they are now accepted.
We can assure you that this armed conflict has highlighted the usefulness of cryptocurrencies in a situation as delicate as war.
Haven assets or an option for money laundering
A previous analysis of the nation’s currently going through a war shows that statistically, Russia was positioned before the war as the third country in the world with the highest development of CRYPTOCURRENCY MINING.
Ukraine is not far behind since it is considered the country in fourth place with the highest adoption and management of crypto assets.
As of February 2023, a situation of the military conflict began between the nations of Ukraine and Russia, where countless countries worldwide have given support to Ukraine; that is where the restrictive and blocking measures arise against Russia.
The exciting thing about this scenario is that even with these limiting measures, the ones that have stood out are the cryptocurrencies, whose characteristic of being decentralized currencies and that no entity has power and control over them, have functioned as financing instruments and, in some cases as haven assets.
The legal tender currencies of both countries have suffered the ravages of this war, where their valuation has fallen to their lowest levels. It is there where the inhabitants who are still in the territory of these nations in conflict are in the constant search to give value to the savings they have left.
Uses of Cryptocurrencies in War
The use the countries immersed in the conflict have given it has been entirely different. In the case of Ukraine, it has used Bitcoin and other digital currencies as a refuge from the multiple aids that people from different parts of the world have sent to contribute to Ukrainian society.
These funds help in the face of a critical financial, social, and infrastructure situation in the Ukrainian countryside. The almost 70 million dollars raised will go towards the necessary improvements in these aspects.
The benefit of cryptocurrencies in terms of paying commissions at a reasonably low cost has made more and more people want to contribute financially to this nation.
While for its part, Russia has made use of digital currencies as a refuge to be able to carry out its international negotiations without any inconvenience because its accounts have been restricted by the economic blockade, as a measure of pressure so that the war conflict ceases.
The lack of regulation of this type of financial asset has allowed the Russian government to use cryptocurrencies in financial transactions with the rest of the world.
As a measure of pressure from Western countries, they have asked the leading exchange platforms to restrict the wallets created by the Russian government so that they cannot carry out any operations. Still, the response has been a neutral position on the part of these exchanges.
The social situation of both nations is another aspect to be evaluated since more people in both countries are in the ongoing search to increase their income since the limitations exerted by war do not allow them to generate income in a traditional way and even less with undervalued currencies.
Although the downward trend that digital currencies have had in recent months does not favor giving more excellent value to the population’s circulating assets, at least they offer more weight than their local currencies, in addition to being a viable option to increase their value in a future upward trend.
Depending on digital currencies, both nations are trying to exist through these financial resources. Still, some inconveniences are usually generated that could make governments uncomfortable.
A parallel financial system could even be generated in which citizens would take on a new way of keeping the economy stable from their point of view on their account.
There are also bad intentions, and this digital market is vulnerable to them; such is the case of the proposal to create a digital currency by the Ukrainian government; this proposal immediately began to develop a false replica of it.
Conclusion
The efficiency and effectiveness of digital currencies have shown that even in the worst scenarios, they can help keep economies from declining and maintain certain to form an economic balance without the intervention of traditional financial entities.