Ukraine’s citizens are turning to cryptocurrency as the country’s central bank starts to impose limits on all digital cash transactions. As a result, users have purchased a large number of blockchain-based stablecoins.
According to the latest report, Tether’s USDT stablecoin is presently trading at a 5% premium on Ukraine’s popular crypto exchange Kuna. In the middle of the current war, Ukraine’s central bank has prohibited the issuing of foreign currency at retail bank branches. It has also restricted the country’s cash transfer system. As a result, Ukrainians have begun to depend on cryptocurrency for day-to-day transactions. Michael Chobanian, CEO of Kuna, said that Ukraine’s native currency is depreciating and that faith in the financial sector has eroded. “The majority of people have no other choice but to invest in cryptocurrency,” he said.
In addition, after Russia’s military intervention, Ukraine has received significant contributions in Bitcoin and Ethereum. Vitalik Buterin, co-founder of Ethereum, has criticised Russia’s recent aggression on Ukraine. Ukraine’s Vice Prime Minister, Mykhailo Fedorov, tweeted on Sunday, February 27, urging that local cryptocurrency exchanges ban Russian customers’ accounts.
Vice Prime Minister Fedorov wrote in a tweet:
I’m requesting that all major cryptocurrency exchanges restrict Russian users’ addresses. It is important to block not just the addresses of Russian and Belarussian leaders, but also those of ordinary people. However, some market experts have argued that it would be wrong to target Russians in this situation.