After the Russian attack, there have been many restrictions on money transfers in Ukraine. The National Bank of Ukraine has banned electronic cash transfers. Banks are prohibited from putting e-money in e-wallets. The foreign exchange market has been banned. The limit for withdrawal of money from banks has been fixed. Issuance of foreign currency from retail bank accounts has also been banned.
After these steps of the National Bank of Ukraine, the use of cryptocurrencies in Ukraine has started on a large scale by people in Ukraine. Data from The Ukraine Cryptocurrency’s largest exchange Kuna shows that Ukrainian citizens are paying a premium for Tether’s USDT Stablecoin. It is linked to the price of the US dollar.

Legalized five days ago

In Ukraine, the government gave legal recognition to cryptocurrencies on February 20 over cryptocurrencies amid the war situation. Ukraine’s parliament has passed the law related to cryptocurrencies and cryptocurrencies have been declared legal.

Kuna founder Michael Chobanian said: “We don’t trust the government. We don’t even trust local currency. Most people are left with no other option than crypto.” Tether is the most popular stable coin. Its market cap is about $80 billion. Unlike Bitcoin and Ethereum, it fluctuates significantly less.

At the current exchange rate, the price of 1 USDT is about 32 Ukrainian Hervinia (currency of Ukraine) or $1.10. As the demand increases, its price is also increasing. For the past few months, the Ukrainian government has been trying to make the country a hub of digital currency.

Taking Bitcoin in donations

Blockchain analytics company Elliptic said in a report recently that a large number of Ukrainian NGOs are getting a large number of Bitcoin donations as tensions with Russia escalate. The report said that NGOs and volunteer groups with his knowledge have received $6,70,000 (about Rs 5 crore) worth of cryptocurrency donations in 2021. To get this fund, these NGOs have used a lot of crypto wallets. Tom Robinson, a chief scientist at Elliptic, said cryptocurrencies are increasingly being used to mobilize crowdfunding for war.