2023-10-21 09:07:01
The Russian-Ukrainian war dealt a sharp blow to the world economy, the financial consequences of which we are still struggling with one and a half years following the beginning of the conflict. The war also affected the crypto economies of the two belligerents. The volume of cryptocurrency transactions decreased by $35.8 billion in Russia and $41 billion in Ukraine, as a result of which both states fell off the podium according to this year’s Global Crypto Acceptance Index. After invading its western neighbor, Russia is constantly hit by various sanctions. NATO powers impose brutal costs to deprive the country of its resources. Last year, the European Union imposed a blanket ban on cryptocurrency services to Russian residents and organizations, forcing foreign trading platforms to pull out of the country. However, as a result of the sanctions, the transaction volume on the local crypto exchanges increased significantly. However, not everyone agrees with the regulators. For example, the majority of the cryptocurrency community believes that during times of war, crypto can be very useful for ordinary people, but the restrictions prevent them from finding shelter. According to Ukrainian officials and government fundraising platforms, cryptocurrencies have been widely used to purchase military weapons and medical equipment in Ukraine. According to a previous report by Chainalysis, up to February of this year, crypto-donations worth $70 million were transferred to the Ukrainian government. Now Ukrainians are using financial instruments that they may not have even known existed before. And although the transaction volume seems to be decreasing, the number of transactions has increased significantly this year in Ukraine – which indicates that the population does not shy away from using cryptocurrencies. However, as the war dragged on, they now have to face many challenges, as the costs to the Ukrainian economy were devastating: according to official data, the country’s GDP fell by 29% in 2022.
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