Human Rights Foundation is a non-profit organisation that promotes human rights “Bitcoin is such an essential humanitarian instrument,” says Alex Gladstein. The Ukrainian government has already spent at least $15 million of the cryptocurrency it has received and has enlisted the support of numerous crypto firms, including FTX, Kuna, and Everstake. Crypto is also being used by some Ukrainians as a substitute for traditional banking institutions. As Russian armies enter Ukraine, the role of cryptocurrency is quite significant. Crypto is frequently used by bad actors, and it might be used by Russia to escape sanctions, which are now the US and its allies’ principal weapon against Russia.
Cryptography is being used by Ukrainians however, there are certain limits
Many Ukrainians find it difficult to use cryptocurrency amid a crisis. At the outset of the invasion, the country’s central bank halted electronic cash transfers, and inhabitants of Ukraine are unable to withdraw foreign currency. According to Chainalysis, Ukraine now ranks fourth in the world in terms of crypto adoption after the country’s parliament passed a law “legalising” cryptocurrency in February. “Right now in Ukraine, you can download an open-source bitcoin wallet that is completely unrelated to your ID and construct an address using a QR code or an alphanumeric string,” Gladstein stated. As the crisis drags on, pro-Ukraine activists are pouring increasingly more cryptocurrency into the nation. According to reports, a cryptocurrency-based NGO assisting the Ukrainian military has raised several million dollars.
Russia can also benefit from cryptocurrency
Ukraine’s vice prime minister and minister of digital transformation, Mykhailo Fedorov, has urged crypto and blockchain networks to restrict Russian users’ addresses. The Russian government is working on a digital currency, as well as measures to assist conceal the source of digital transactions. The United States is also considering sanctions against Russian cryptocurrency assets. The heroic portrayal of crypto amid a crisis obscures the space’s darker side. The Russian government has been constructing a digital currency, according to the New York Times, and Russia has been developing technologies to assist obscure the origins of digital transactions. According to an investigation, three-quarters of the money gained through ransomware attacks in 2021 went to hackers associated with Russia. Ukraine is a country in Eastern Europe.
Bitcoin isn’t necessarily digital gold
One of the main arguments made by proponents of cryptocurrencies is that they have the potential to behave as “digital gold.” This implies that, unlike fiat currencies, bitcoin cannot be diluted since there will always be a finite quantity of bitcoin. This notion hasn’t been confirmed to be correct. Bitcoin has shown to be extremely volatile, frequently moving in lockstep with equities. Foundation for Human Rights: Cryptocurrency is less volatile than fiat money in several regions. According to Chainalysis, crypto activity in rubles was lower in March than it was at the end of February. “You’re frightened because bitcoin dropped 10% today or something,” said Gladstein of the Human Rights Foundation.
Bitcoins have pros and cons in usage amid wartimes. Despite the favourable role of cryptocurrency which offers for people who suffered from the war, especially from the most recent incident, like the Russo-Ukrainian War. Cryptocurrency may still have limitations that are often against by authorities of the nation. Wanna know more about the news of cryptocurrency, check out the new cryptocurrency trends.