Here’s how the Russia-Ukraine war affects crypto environment

Ukraine

Here’s how the Russia-Ukraine war affects crypto environment. Source: depositphotos.com

According to GlobalData, crypto has become a prominent feature and can potentially emerge as an alternative payment mechanism amid ongoing Russia-Ukraine war.

Cryptocurrency is politically unbiased and is gradually gaining traction. While the US Federation has emphasized the importance of regulation, events in the war-torn countries may act as a catalyst for cryptocurrencies. Following the ban of Russian banks from the SWIFT interbank settlement system, banks and oligarchs may use cryptocurrency as an alternate means of moving assets in and out of the country
Manish Dixit, Principal Disruptive Tech Analyst at GlobalData

After Ukraine’s appeal for cryptocurrency donations, more than $50 million worth of cryptocurrency poured in.

In addition, Ukraine plans to mint NFTs to fund its military. Meanwhile, cryptocurrency trading in Russia has soared as rouble keeps going down. The sanctions are aimed at constraining Russia’s economy and severing it from the global financial system.

Ukraine citizens may benefit from cryptocurrency as they can convert their wealth into cryptocurrencies and curtail the risk of a banking system collapse. Similarly, cryptocurrencies can help Russians to evade the crashing rouble
Mukesh Singh, Senior Disruptive Tech Analyst at GlobalData

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