The National Bank of Ukraine ordered to suspend issuing e-money. As a result, Ukrainians turn to crypto.
Electronic money refers to digital accounts platforms like PayPal and Venmo.
National Bank of Ukraine suspends e-money
On Thursday, The National Bank of Ukraine released a statement including an order to suspend the foreign exchange market.
Furthermore, they prohibit the issuance of foreign currency from retail bank accounts and limit cash withdrawals.
Additionally, Ukrainians turn to crypto as the country cracks down on pathways to cash.
Ukrainians turn to crypto in times of crisis
Founder of Kuna Micheal Chobanian told CoinDesk, “We don’t trust the government. We don’t trust the banking system. We don’t trust the local currency. The majority of people have nothing else to choose apart from crypto.”
Furthermore, Kuna reported domestic buyers paying a premium for Tether’s USDT stablecoin.
Due to increased demands, 1 USDT is approximately 32 Ukrainian hryvnia, or $1.10.
Additionally, Ukrainian President Volodymyr Zelenskyy and the parliament regulated a law to legalize and regulate crypto.
The president also signed a law in 2021 for Ukraine to issue its own digital currency.
In August 2021, on a visit to the U.S., President Zelenskky said Ukraine’s budding “innovative legal market for virtual assets” is a selling point for investment.
Tether – a stable and popular stablecoin
While bitcoin and ethereum have witnessed severe market volatility, tether by market cap values to nearly $80 billion.
Furthermore, Ukraine also planned to open the crypto market to investors and businesses before the Russian attack.
Due to the Russian invasion, investors and venture capital funds in Silicon valley are distracted from the touting of top state officials.
Lastly,
As the Russian-Ukraine crisis escalates, the world economy is headed for a rocky ride. However, Ukraine leaders aim to rebrand themselves as the mecca for digital currencies.
Also Read – Halving cycles lead to no Bitcoin Bull Run until 2024: Du Jun
1 Comment