Ukrainians face an uphill battle to retain their country as the conflict with Putin-led Russia continues. Peace talks between the Waring nations haven’t really yielded tangible results; the Russian military is showing no signs of backing off while Ukrainians are keen to fight off their invaders. The harsh effects of the sanctions on Russia’s economy and citizens haven’t been enough to convince her leader to call off the attempts. Russia’s invasion has grounded the central European country’s economy and has displaced millions of its citizens.
While the rest of the world continues to condemn Russia’s actions and assist Ukraine, the conflict could linger on for a while. Support for Ukraine comes from all parts of the world in different forms. As usual, cryptocurrency communities are getting involved. Drumming their support for the eastern Europe nation, over $100 million in cryptocurrencies have since been donated to Ukraine to assist them in their plight.
Being handed millions of dollars in cryptocurrencies via donations, Ukraine nets more than just one advantage. In addition to the financial reinforcement this could bring, cryptocurrencies offer a more efficient financial system relative to the traditional system. For a government thrown into war, an ‘unblockable’ means to exchange value comes in handy. Cryptocurrencies’ underlying technology makes for the most flexible exchange. Devoid of third parties and powering universally acceptable stores of value, it is actually meant for turbulence.
Seeing the role cryptocurrencies have played in his struggle, the Ukrainian president moved to make bitcoin a legal tender in the region. This a reasonable thing to do when you have a tangible amount of cryptocurrency in your custody. We currently have no clue how exactly Ukraine is using the cryptocurrencies donated to them, but at least we can guess. The move to legalize bitcoin hints at positive results from using cryptocurrencies; especially at a time like this. And if more nations will consider adopting positive policies for bitcoin and other cryptocurrencies is a question of if they are actually watching the role cryptocurrencies are playing currently.
In conflict, Ukraine is demonstrating just how useful cryptocurrencies could be in turbulent times. A point of consideration for other nations. It is already playing an important role in digital assets. And even after the war, Ukraine is poised to be a catalyst for digital assets in Europe and the rest of the world…obviously.
The nation of Ukraine is currently in ruins. Thanks to shellings from Russia’s artillery, important structures in Ukrainian cities are in rumbles. Once the conflict ends, Ukraine will be looking to rebuild its nation again. That stash from donations will once again play a role. And as long the nation stays, open to cryptocurrency donations, the benevolent cryptocurrency community will continue to support their recovery. As a legal tender, donations in bitcoin and other cryptocurrencies will be circulated through the nation’s government. Probably as payment to the different bodies assisting in development plans.
With bitcoin etched in the legal books of a country whose development has been badly affected by war, the need to adopt futuristic solutions to fast-track its recovery and competitive ability is a matter of importance. An optimized medium of payment and a superior store of value are good options, bitcoin fits perfectly into this. Just like El Salvador, Ukraine could be the next country to utilize digital assets for national growth.
Unlike Salvadorians, Ukrainians have learned the benefits of using swift payment solutions like cryptocurrencies in a rather unfortunate way. The banking experience during this conflict period is already enough to make them appreciate the distinctions between bitcoin and other cryptocurrencies over their custodial financial systems. Many already hold a majority of their funds in cryptocurrencies, this will continue even after the war.
Ukraine will double as a case study for cryptocurrencies’ relevance in turbulence and recovery. As a nationally accepted medium of exchange, it will play a role in the normal lives of people living in this region. As the rest of the world watches; every event in Ukraine as it concerns cryptocurrencies is a major demonstration of utility. For a concept met with so many restrictions, cryptocurrency and blockchain are proving the rest of the world wrong. Playing vital roles in contrasting times is proof of versatility.
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