Cryptocurrency in war: An odd advantage.
If you’ve never sponsored a war, you have a chance to do so; with your cryptocurrency. While that sounds interesting; the fact that the government of a notable European nation is accepting donations in cryptocurrency is arguably more interesting in my opinion. Over $3 million in bitcoin, ethereum and stable coins have been donated to the eastern European nation since they requested financial assistance from the general public in cryptocurrency. You might not be sponsoring a war; you might be contributing to the rebuilding of a war-torn nation or enriching some politicians…whichever one, it’s ‘interesting’
The faceoff between Russia and Ukraine continues; the rest of the world have been drawn into the unrest and the sanctions have been raining on Russia. If you’re looking forward to watching Russia in the world cup; you might want to lay that dream to rest. But that’s of least importance when you consider what the current situation could turn into. The damages done already will take years to fix, more frightening is the damages that are yet to come. The world sits on a time bomb as the chances of an escalation are unfortunately, high.
As military personnel from both countries continue to live this unexpected nightmare, civilians struggle to live through a drastic change in lifestyle; the traditional financial systems are failing in these circumstances. I doubt if waiting on the long queue at the ATM is worth it this time around. Ukrainians and foreigners in this country seek a better alternative as their government also seek to strengthen their financial position. Cryptocurrency; a historically infamous idea, stands at the center of this situation.
Being handed millions of dollars in cryptocurrencies via donations, Ukraine nets more than just one advantage. In addition to the financial reinforcement this could bring, cryptocurrencies offer a more efficient financial system relative to the traditional system. For a government thrown into war, an ‘unblockable’ means to exchange value comes in handy. Cryptocurrencies’ underlying technology makes for the most flexible exchange. Devoid of third parties and powering universally acceptable stores of value, it’s actually meant for turbulence…an odd advantage.
Staying anonymous while exchanging valuables is something waring nations seek from time to time; cryptocurrencies more than efficiently, offer that on a platter. It will be interesting to see how Ukraine uses the cryptocurrencies at its disposal to their advantage.
For the citizens, it’s mainly the need for a seamless financial system. Waiting in the queues at banking halls and ATM stands in a war-torn location is as risky as risk could get. Well, that’s if the banks are functioning properly in these situations. Relocation with wads of fiat adds to the loads as much as it is risky too. Merchants’ taste for physical cash isn’t really so high, thanks to the presiding conditions. Cryptocurrencies in personal wallets solves this. A secure, efficient and portable financial system…perfect definition of what the people needs.
I wouldn’t tag the recent rise in cryptocurrencies’ values to an increased demand due to the Russia-Ukraine conflict. It won’t be a surprise if this is actually the case anyways.
In situations like this, the global financial system needs everything cryptocurrency and blockchain technology have been boasting to offer. In a very odd way this has played out. Personally, I’d prefer cryptocurrency and blockchain technology displaying their potentials in situations which are ethically conforming; but somethings are built for tough times…probably. If crypto and blockchain technology can assist efficiently as the world struggle to regain peace; we can take that as a win. And if more nations will consider adopting positive policies for bitcoin and other cryptocurrencies is a question of if they are actually watching the role cryptocurrencies are playing currently.
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It is both a blessing for the people of Ukraine to get much needed aid to continue the struggles, but also as a method for Russia and the higher ups there to avoid the sanctions in one way shape of form. So much like any tool it has good and bad elements
True, Unfortunately, in situations like this, the bad elements might prevail. While crypto fits into this situation positively, it does the same negatively. Fingers crossed, hoping this turns out well. Thanks for taking time to read!