- High inflation has affected people in both nations as a result of the war’s economic toll.
- Ukrainian hryvnia-denominated trade volume increased by 121% to $307 million in March.
There was a spike in crypto transactions between Russia and Ukraine shortly after hostilities broke out in late February. While Russian transactions fluctuated within a tight range in the weeks and months that followed, maybe as a result of service limitations. Ukrainian transactions increased continuously right up until June.
According to an extract from Chainalysis’ impending 2022 Geography of Cryptocurrency Report. The Russian invasion of Ukraine and accompanying armed war, which is now increasing, have touched all areas of life in the two countries, including cryptocurrency. High inflation has affected people in both nations as a result of the war’s economic toll.
Ukrainian hryvnia-denominated trade volume increased by 121% to $307 million in March. Shortly after the conflict broke out, while Russian ruble-denominated trade volume increased by 35% to $805 million.
Crypto Adoption Surges Amid Sanctions
According to Tatiana Dmytrenko, a senior adviser in Ukraine’s Ministry of Finance and member of the World Economic Forum’s Digital Assets Task Force, some Ukrainians may have looked to exchange their hryvnia holdings for cryptocurrency. In light of currency controls introduced under the martial law imposed by Kyiv. After these regulations were loosened in July, trade volumes for cryptocurrencies fell.
After Russia’s banks were banned from the global financial messaging network SWIFT. Cryptocurrency played a role in funding Russia’s international commerce. Despite the fact that crypto markets are barely liquid enough to facilitate systematic sanctions evasion.
Some businesses may have already begun utilizing digital assets for such transactions, an expert said, given that the Central Bank of Russia recently decided to allow crypto payments for cross-border settlements. Since stablecoins are less likely to fluctuate in value, he thinks they would be more widely accepted as a means of trade than bitcoin.
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