Bitcoin and crypto are growing as financial strongholds in the wake of recent events.
Ukraine has received over $50 million in crypto donations, and citizens of both Ukraine and Russia are flocking to crypto platforms.
Crypto is emerging as a reliable asset against governmental forces.
Bitcoin and cryptocurrencies have quickly emerged as a stronghold of finance in the wake of recent events. Russia’s acts of aggression have decimated both its own economy and Ukraine, and citizens of both nations have fast turned to the crypto market to protect their finances.
Ukrainian officials have themselves celebrated the contribution of the crypto community, with Vice Prime Minister Mykhailo Fedorov praising all efforts and thanking Uniswap for its donation feature. So far, Ukraine has received over $50 million in donations, which continues to rise. Ukraine has confirmed an airdrop as well, due on Mar. 3.
Even before the Russian invasion of Ukraine, crypto began to show itself as a reliable asset during hard times. The Canadian trucker convoy protest showed that bitcoin is a way to secure one’s finances, whichever side of the political spectrum one exists. Crypto was born out of a need to decouple itself from solid governmental forces, and to that end, it has succeeded spectacularly.
Kraken CEO donating 1BTC to the Freedom Convoy: Twitter
Although, there have not been pleasant acknowledgments for the crypto market. Some in the West have criticized the decision of some platforms to continue operating in Russia. These critics have said that Russia and its sanctions can use the crypto market to defy the restrictions imposed by the West.
This has become doubly pressing for authorities, as several major crypto exchanges have not agreed to stop operating in Russia. Kraken and Coinbase are among these platforms, while Binance has limited its frozen accounts to those on the sanctioned list.
The ejection of Russia from SWIFT caused widespread economic turmoil, and crypto usage has surged dramatically since. With one of its largest banks, Sberbank, expected to fall to failure, it would not be surprising to see crypto usage increase further.
There is some fear in the market that governments will come down firmly on the market with the decision by some entities to continue operations as usual. The EU is reportedly looking to bring crypto into the sphere of sanctions, which could substantially impact the market.
To what degree crypto will protect Russian citizens remains to be seen. Some are skeptical that crypto will have a large enough effect to make a difference. Others believe that any outlet will go against the unified effort to punish Russia for its aggression — but crypto supporters say decentralization goes beyond politics.