BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Media

What the Russia-Ukraine Conflict has Revealed about Crypto

BlockNews Team by BlockNews Team
February 3, 2023
in Media, Opinion, Politics, Social
Reading Time: 4 mins read
A A
russia ukraine crypto
2
SHARES
32
VIEWS
Share on TwitterShare on Reddit

The Russia-Ukraine conflict has tested the capabilities of crypto in a real-world battle where sanctions and inventive blockchain crowdfunding models abound.

You might also like

Mark Cuban Slams Gold Hoarders, Defends Bitcoin

Crypto Exchanges Benefit from US Banking Crisis: JPMorgan

The UAE Central Bank Signs Deal for CBDC Strategy

The war, which is drawing into its ninth month, has uncovered a raft of blockchain benefits, such as the capacity to support humanitarian endeavors. It has also revealed how much control national authorities can exert over crypto networks. 

Vadym Synegin, the co-founder at IT and crypto solutions provider Tecor, said that cryptocurrencies have a unique advantage in situations where there is an increased risk of money transfer interruptions due to the centralization of conventional systems.

“With most markets controlled by centralized authority figures that can easily buckle under the political tensions, the crypto markets remain more or less decentralized, meaning that their operational efficiencies during periods of crisis are further enhanced,” he said.

So, what other aspects have the Russia-Ukraine conflict revealed about crypto?

Crypto Donations for Humanitarian Aid

The Russia-Ukraine conflict has shown that cryptocurrencies can be used for fundraising in military conflicts. Notably, the Ukrainian government began accepting crypto donations at the beginning of the year to enhance donor inclusivity, which led to the creation of the Crypto Fund of Ukraine.

The nation’s Ministry of Digital Transformation is currently in charge of the fund, which was set up in conjunction with Kuna, FTX, and Everstake to bolster Ukraine’s humanitarian aid and military programs. The project has enabled the Ukrainian government to raise over $100 million in cryptocurrency donations.

That said, some pro-Ukraine crypto fundraising groups have turned to novel crypto instruments such as decentralized autonomous organizations (DAOs) to raise funds for the nation. 

The UkraineDAO, which is among the most prominent of the lot, was created in February for the sole purpose of providing monetary support to Ukrainian soldiers. The project’s co-founders include Russian critic Nadya Tolokonnikova, also a founding member of the Pussy Riot feminist protest group. Other UkraineDAO founding members include PleasrDAO and Trippy Labs, a generative NFT studio. The project has raised over $8 million so far.

Among the most notable successes of the UkraineDAO was the recent sale of a nonfungible token (NFT) of the Ukrainian flag that fetched just over $6 million in Ether. It is currently ranked among the top 20 most expensive NFTs.

 Kayla Kroot, the co-founder of the Koii Network, regarding the current use of crypto in the Ukraine situation. Her company is involved in developing novel blockchain models, including Web3.

According to the executive, cryptocurrencies have enabled citizens caught up in the war to maintain access to their money during these trying times:

“Cryptocurrency was developed to help global citizens maintain control of their money.” 

Governments Can Limit Crypto

Satoshi Nakamoto, the pseudonymous creator of Bitcoin, developed the first cryptocurrency to devolve the control of money away from governments and centralized financial institutions. However, the Russia-Ukraine conflict has demonstrated that regional blocs and major jurisdictions can impose bans and exert control over cryptocurrencies.

In October, the European Commission announced sweeping sanctions targeting Russian crypto custodial wallets under the control of European enterprises and exchanges. EU blockchain companies were additionally prohibited from providing crypto custodial services to Russian entities.

The new laws were enacted in response to Russia’s invasion of Ukraine to prevent Russia from evading sanctions.

Previous restrictions placed a trade and deposit limit of up to 10,000 euros on Russian crypto wallets and accounts.

Recent EU crypto enactments have forced some major exchanges, such as Binance and Coinbase, which have operations in Europe, to restrict services to Russian individuals and companies to avoid a regulatory clash.

Other regulated crypto exchanges such as Kraken, Crypto.com, and Blockchain.com have also ceased providing crypto services to Russian citizens.

Meanwhile, Russian authorities need help handling the flurry of crypto wallet prohibitions and the occlusion of Russian central banks from the SWIFT money transfer system. The ban on these systems has effectively locked out the nation from major international financial markets.

Conclusion 

The Russia–Ukraine conflict has showcased the use of crypto in community effort settings for the common good. While the Ukrainian government has raised millions of dollars from direct crypto donations, some digital currency fundraising efforts have been undermined by scammers out to make a profit from the war.

More crypto advantages and limitations will likely crop up as use cases emerge in more diverse environments.

Tags: cryptoRussiaukraineUkraineDAO
Tweet1ShareShare1

Recommended For You

Mark Cuban Slams Gold Hoarders, Defends Bitcoin

by BlockNews Team
March 27, 2023
0
mark cuban

Mark Cuban and Bill Maher hold opposing views on Bitcoin vs gold investment Cuban argues in favor of Bitcoin's digital ledger and stored value, while Maher prefers gold's...

Read more

Crypto Exchanges Benefit from US Banking Crisis: JPMorgan

by BlockNews Team
March 27, 2023
0
JP Morgan

The collapse of three major banks in the US may have opened up an opportunity for crypto exchanges all over the world, according to JPMorgan Tether took the...

Read more

The UAE Central Bank Signs Deal for CBDC Strategy

by BlockNews Team
March 27, 2023
0
CBUAE

UAE to release a CBDC  and begin its first phase very shorty. The CBDC strategy was first unveiled in February as part of the central bank’s program to...

Read more

‘Surgical Removal’ of Crypto Will Only Weaken USD Dominance, Commentators Say

by BlockNews Team
March 27, 2023
0
crypto dominance

The US banking system will only become more isolated as a result of the surgical removal of cryptocurrencies, which will also damage the dollar's status as the world's...

Read more

Aéropostale’s Exciting Journey into the Metaverse: Introducing AeroPax and AeroWorld

by BlockNews Team
March 27, 2023
0
AeroWorld Aéropostale

Aéropostale launches AeroPax, a collection of 30,000 unique NFT avatars, in partnership with MetaversePlus, offering exclusive perks and access to the upcoming AeroWorld metaverse. The brand has planned...

Read more
Next Post
silvergate logo

Silvergate Faces Department of Justice Investigation Over Involvement With FTX And Alameda

Related News

Cryptocurrency Explained: The Basics and Need to Know Information  

Cryptocurrency Explained: The Basics and Need to Know Information  

February 23, 2023
china cbdc

People’s Bank of China Includes CBDC in Currency Circulation

January 16, 2023
Hackers Used the Copycat Method to Steal $88 Million from the Nomad Bridge

Hackers Used the Copycat Method to Steal $88 Million from the Nomad Bridge

August 15, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Mark Cuban Slams Gold Hoarders, Defends Bitcoin March 27, 2023
  • Crypto Exchanges Benefit from US Banking Crisis: JPMorgan March 27, 2023
  • The UAE Central Bank Signs Deal for CBDC Strategy March 27, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?