Bitcoin shot up by 16% at the beginning of the Ukraine-Russia conflict in early March. These sanctions on Russia’s central bank were aimed at oligarchs and were an attempt to isolate the country from the global financial system. Many suspect that Russians are also using crypto as a way to evade sanctions and are desperately getting their wealth out.
Russians however aren’t the only ones relying on cryptocurrencies during this tumultuous time. With rising uncertainty and traditional financial avenues threatened, Ukrainians are also shifting to financial support through crypto. The Ukrainian government has received over 54 million dollars as donations via various cryptocurrencies including bitcoin and even dogecoin.
This may appear as more governments embracing decentralized economies and making them the norm but the move does come with its limitations and concerns. Without much authentication, such alternative currencies could be detrimental and could be subject to cyberwarfare. There also remain several barriers to entry such as understanding blockchain technologies, and access to the internet, especially amidst a war.
Interestingly the conflict has also offered a glimpse of a world that has embraced non-traditional currencies and allows other governments to formulate legislation in response to that possible future.