Central Bank of UkraineAfter Russia suspended electronic cash transfers, Ukrainian citizens were observed hoarding cryptocurrencies as the war with Russian forces spread to the capital, Kiev. It was seen that the foreign exchange trade was also blocked in the country, and citizens created dollar alternatives in crypto.
Trading volumes in Tether, the world’s largest stablecoin, have been found to have increased this week, according to data from popular Ukrainian crypto exchange Kuna. Ukrainians also seem to be paying a premium of 10% to 20% for USDT, whose value is pegged close to the US dollar.
For example, the current dollar rate of the hryvnia is around 30, while Tether is trading between 32 and 35 hryvnia. But the trade has been reflected on a much larger scale as volumes in Tether have consistently outpaced those in Bitcoin since the start of the crisis.
Tether and most stablecoins have started to see more demand in recent weeks due to increased volatility in the markets. close relationship with the dollar cryptocurrencymade these safe havens.
Danish journalists currently in Ukraine, due to such a scarce cash supply Bitcoin (BTC) They said they had to buy a car using Bitcoin donations to Ukraine also exceeded $4 million, according to Forbes reports.
Crypto Adoption In Ukraine Is Not A New Event
Crypto adoption in Ukraine is actually not a new phenomenon. The country recently passed a law to recognize and regulate cryptocurrencies and was intended to open the market to foreign investors prior to the Russian invasion.
Blockchain data firm Chainalysis ranked Ukraine as the world’s fourth-largest crypto buyer in a report released last year.
Despite widespread condemnation of Moscow’s actions, the Russia-Ukraine conflict has so far shown no signs of de-escalation. Conflict fears have caused wild swings in financial markets, including crypto. While the value of safe havens such as gold and the dollar rose, oil prices rose with the allegations of Russia’s supply cuts.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.