Ukraine: conflict raises currency problems, citizens resort to this currency at high premiums

Affected digital transfers

Cited media reports circular by the Central Bank of Ukraine which has imposed martial law on digital money transfers in the country. According to the orderIt is expected that the issuance of electronic fiat money will be banned for the foreseeable future, along with limited withdrawals, as the conflict continues to escalate.

And as a result, Ukrainian crypto exchange Kuna Reportedly clocking a bounty on Tether’s USDT stablecoin in the country. Michael Chobanian, the founder of Kuna, said in a interview

“We don’t trust the government. We don’t trust the banking system. We do not trust the local currency. The majority of people have nothing to choose from but crypto.”

Source: CoinGecko

Past 24-hour trade volume in the spot market of the exchange also shows USDT-Ukrainian hryvnia as the dominant pair with more than 30% of the volume. On CoinGecko, Ukraine’s domestic currency (UAH 56.5%) controls the exchange’s volume, followed by the Tether stablecoin (USDT 34.8%).

Source: CoinGecko

Kuna records increasing volumes

In addition, the stock market has also recorded an increase in trading volume since Russia announced an invasion on Feb. 24. Exchange data shows that volumes peaked on February 25, amounting to $3.33 million at the time of writing.

Source: CoinGecko

That said, the USDT/UAH pair is: to maintain a high and low range of about 37 and 31 at the time of pressing Kuna.

What does it mean for the countries?

It is also worth noting that shortly after the situation between Russia and Ukraine intensified, the crypto market took a hard plunge. But Media Reports Suggest It’s Led To Crypto donations rising for Ukraine, while Russia could also use asset class to circumvent sanctions

Since US President Joe Biden has authorized “strong sanctions” against Russia’s military operations, the wealthy could use the opportunity to circumvent the crisis through crypto, experts say. Matthew Sigel, director of digital asset research at VanEck, told Bloomberg:

“Neither dictators nor human rights activists will encounter any censorship on the Bitcoin network.”

Here it is noteworthy what Mati Greenspan, founder and chief executive officer of Quantum Economics stated that if two people or organizations want to do business with each other and cannot do it through the banks, they can do it with Bitcoin, further adding,

“If a wealthy person fears that their accounts could be frozen due to sanctions, they can simply keep their wealth in Bitcoin to be protected from such actions.”

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