The Russian attack on Ukraine, according to a new Financial Times analysis, may assist conventional crypto acceptance.
The Ukrainian government tweeted in an attempt to appeal to the international community to donate cryptocurrencies to aid the country in its struggle against the Russian aggression. It was also indicated by the authorities in Ukraine that the cryptocurrency funds will be used to reinforce the Ukrainian military capabilities while also assisting the country in fortifying its defense and protecting its borders.
The Ukrainian officials collected a remarkable sum of $106 million in cryptocurrency in answer to the abovementioned call, creating an unprecedented occurrence in world history, where cryptocurrencies took the lead and helped a war-torn country boost its resistance.
Ukrainian crypto trading rose by 107% since the conflict began. Furthermore, the collapse of the Ruble and the increasingly dysfunctional banking system in Russia has prompted a 231% rise over the same period.https://t.co/PVSQGYHRgM pic.twitter.com/c9EusGzjbK
— unfolded. (@cryptounfolded) March 11, 2022
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The war in Ukraine, per a new Financial Times report, might be a catalyst for the cryptocurrency industry. The hedge fund Bridgewater conveyed to its clients that this unfortunate war constitutes the first time when cryptocurrencies are in play, by also adding that “these shorter-term dynamics are occurring alongside structural changes in cryptocurrency markets that we believe are self-reinforcing, as adoption by key institutional investors increases and the surrounding ecosystem deepens.”
Furthermore, Ukraine, which is known for its cryptocurrency activity and tech expertise, has the greatest cryptocurrency utilization per capita in 2020 and the fourth highest in 2021 on a global scale, which could be one of the factors driving the country’s rapid cryptocurrency activity. In addition, the influx of cryptocurrency contributions and Ukraine’s open application of them could be a potential motivator for crypto’s widespread implementation.
One more case boosting cryptocurrency adoption in Ukraine was recently highlighted in a CoinShares blog post. According to CoinShares, “when times are desperate and where banks do not function correctly, it is often highly risky to transport physical cash. This is the case for many Ukrainians and Russians at present, consequently, crypto assets are seen as an attractive alternative. This has been a concept rarely tested until now, where we have seen Ukrainian crypto trading rise by 107% since the conflict began. Furthermore, the collapse of the Ruble and the increasingly dysfunctional banking system in Russia has prompted a 231% rise over the same period.”
As per the conclusion of the report, Bitcoin (BTC) volumes have a tendency to grow faster in countries where geopolitical risk is more pronounced.
“Cryptocurrencies are being used as a hedge against falling domestic currencies and for their portability, particularly important for Ukrainian refugees, allowing them to cross borders without the risk of confiscation/theft of their assets,” CoinShares posited in the blog post.