Cryptocurrencies Gained Popularity in Ukraine
The National Bank of Ukraine is cracking down on digital money transfers in connection with a nationwide declaration of martial law. It ordered electronic money issuers to suspend the issuance of e-money and the replenishment of electronic wallets with e-money. The reference to electronic money likely refers to fiat currencies held in digital accounts through various platforms. As the country cracks down on pathways to cash and Russia unleashes airstrikes and ground troops, some people in Ukraine are instead turning to cryptocurrencies.
Ukrainians are paying a premium for Tether’s USDT stablecoin, which is pegged to the price of the U.S. dollar. At the moment, the tether is the most popular stablecoin by market capitalization at nearly $80 billion. Cryptocurrencies experienced a great deal of volatility in recent weeks. On the contrary, tether, like other stablecoins of its kind, is usually pretty stable in value.
Cryptocurrencies and Ukraine
Authorities in Ukraine worked hard to make cryptocurrencies more popular in the country. In 2021, Ukrainian President Volodymyr Zelenskyy signed a law that paved the way for Ukraine’s central bank to issue its own digital currency.
Besides, the country’s president and parliament recently came to terms on a law to legalize and regulate cryptocurrency. During his visit to the U.S. the country’s leader spoke of Ukraine’s budding “legal innovative market for virtual assets” as a selling point for investment. The country’s Minister of Digital Transformation Mykhailo Fedorov said Ukraine was modernizing its payment market. As a result, the country’s central bank would be able to issue digital currency.
Prior to the Russian Federation’s attack, the country had plans to open the cryptocurrency market to businesses and investors. In spite of challenges, Ukraine has the potential to make cryptocurrencies more popular among its citizens in the future.
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