Quick take:
Citizens and residents of Ukraine have turned to Bitcoin and other cryptocurrencies as a result of the country’s Central Bank suspending the use of e-money transfers.
According to data from CoinGecko, trade volume on the Ukrainian crypto exchange of Kuna spiked by 220% on February 24th after the Central bank made the announcement.
Earlier on that day, the trade volume on Kuna stood at $1.5 million before spiking to $4.8 million by midnight as a result of the new restrictions. Trade volume on Kuna has since normalized at $1.7 million.
The suspension of e-money transfers was issued by the Ukrainian Central Bank to cushion the country’s currency, the Hryvnia, from the potential volatility as a result of Russia invading the country
.The Ukrainian Central bank went on to explain that the measures were also aimed at ‘[ensuring] the reliable and stable operation of Ukraine’s financial system and facilitate the fullest support for the activity of the Armed Forces of Ukraine, as well as the smooth operation of critical infrastructure’.
Furthermore, the order to suspend e-money transfers was part of the following actions by the Ukrainian Central Bank effective 24th of February.