Subscribe To Our Newsletter

    Get the latest crypto news right into your email box. No spamming. We hate it too. Only pertinent news you need to know

    Latest News

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 2022

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 2022

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 2022
    Facebook Twitter Pinterest LinkedIn
    RareHippo – Crypto, Bitcoin, Blockchain News & Views
    Facebook Twitter Pinterest LinkedIn
    • Home
    • Bitcoin
    • NewsWire
      1. Latest News
      2. Top Stories
      3. Features
      4. What’s Hot
      5. Must Read
      6. Trending
      7. Spotlight
      8. Editors’ Picks
      9. View All

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      El Salvador’s Companies Barely Bother With Bitcoin

      March 19, 2022

      New Jersey legislation aims to prevent public officials from being gifted NFTs

      March 18, 2022

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Crypto’s Preferred Currency for Political Donations Isn’t Bitcoin. It’s Dollars

      March 19, 2022

      Meta Sued by Australian Watchdog Over Scam Crypto Advertisements

      March 18, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      Two Senators propose crypto legislation for tax exemption on capital gains

      May 1, 2022

      Wall Street Reluctantly Embraces Crypto

      May 1, 2022

      Warren bill draws outcry over broad terms, but seems unlikely to pass

      March 20, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Russia-Ukraine War Is Bringing Out the Good, Bad, & Ugly of Cryptocurrencies

      March 18, 2022

      The ‘world’s most advanced’ digital human wants you to buy her NFT art

      March 15, 2022

      FTX crypto exchange wins license in Dubai to open regional headquarters

      March 15, 2022

      Crypto Startup Founded by Ex-Meta Employees Raises $200 Million

      March 16, 2022

      U.K. Crime Agency Wants to Regulate Crypto Transaction Mixers

      March 15, 2022

      A Wall Street Quant Turns His Crypto Firm Into a Unicorn

      March 14, 2022

      Standard Chartered’s crypto custodian to help clients earn yield on token holdings

      March 14, 2022

      Man passing as UN affiliate convicted for crypto scheme

      March 18, 2022

      The Future of Crypto Is Boring — and Bright

      March 15, 2022

      Investors turn to crypto funds, companies as Russia-Ukraine crisis escalates

      March 15, 2022

      Binance Wins Crypto Licenses From Dubai, Bahrain

      March 15, 2022

      Why Bitcoin’s Environmental Problems Are So Hard to Fix

      March 16, 2022

      Americans Want Crypto From Their Banks

      March 15, 2022

      Why Decentralized Exchanges Are Important in the Crypto Economy

      March 10, 2022

      Binance plots M&A spree as regulators scrutinize crypto trading unit

      March 10, 2022

      Amid New Executive Order, White House Director Sheds Light On Crypto Policy

      March 16, 2022

      Bitcoin Evangelist Saylor Tells Economists Why They’re Wrong

      March 15, 2022

      Crypto Mania in Texas Risks New Costs and Strains on Shaky Grid

      March 15, 2022

      Bitcoin’s scared of commitment, Mr. Biden

      March 15, 2022

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Two Senators propose crypto legislation for tax exemption on capital gains

      May 1, 2022
    • Altcoins
      • Ethereum
      • XRP-Ripple
      • Solana
      • Dogecoin
      • Cardano
      • Shiba Inu
    • Topics
      • Cryptocurrencies
      • Investments
      • Markets
      • NFTs
      • DeFi
      • ETFs
      • DAOs
      • Crypto Regulation
      • Metaverse
      • Blockchain & Web3
      • Blockchain Gaming
      • Crypto Exchanges
      • Crypto Mining
      • Stablecoins
      • Cybersecurity
      • Digital Currencies – CBDC
      • Crypto Book Reviews
      • Technology
      • Internet of Things
    • Opinions
    • Explainers
    • Press Releases

      Former Uber LatAm Head of Policy Leads Crypto Ride-Hailer Drife Toward Planned Global Expansion

      March 7, 2022

      European index provider for crypto assets Vinter raises $3.4m funding

      February 22, 2022

      PR – British crypto processor brings in $60 million for expansion in Europe

      January 25, 2022

      PR – CoinMENA obtains 2nd crypt0 license from European Union

      January 25, 2022

      NFT investment specialist looks to acquire Pluto Digital for £96m

      January 24, 2022
    RareHippo – Crypto, Bitcoin, Blockchain News & Views
    Home»Cryptocurrencies»The case for cryptocurrencies in times of war
    Cryptocurrencies

    The case for cryptocurrencies in times of war

    By Saloni Sardana
    March 4, 2022By See Source Below5 Mins ReadNo Comments
    Facebook Twitter LinkedIn Pinterest Reddit WhatsApp Email Tumblr VKontakte Telegram
    Share
    Facebook Twitter Pinterest Reddit WhatsApp Email LinkedIn Tumblr Telegram

    A week is long in the cryptocurrency world, and the past week is a perfect example of this. 

    The cryptocurrency market tanked last week, moving in tandem with risk-on assets such as equities when news broke of russia’s invasion of Ukraine. This led crypto-sceptics to claim  that digital currencies clearly aren’t the gold 2.0 that many crypto-bulls believe. 

    Donate to RareHippo Now!

    But the opposite happened this week, with cryptocurrencies soaring on Wednesday even as stocks struggled. 

    So why is crypto up and what have tensions between Russia and Ukraine taught us about the crypto market’s various uses?

    Ukranians are flocking to cryptocurrencies 

    Ukraine has seen a surge in demand for cryptocurrencies. As the Wall Journal Points out, bitcoin has been trading at a “premium” this week against the Ukrainian currency, the hryvnia.

    “On Binance, the largest exchange in the world, bitcoin was trading for the equivalent of $45,894 in hryvnia terms. On Kuna, the largest exchange in Ukraine, it was at $46,847, and had traded as high as $51,240,” the Journal said. AdvertisementAdvertisement – Article continues below

    Ukraine has raised more than $35m in donations from digital currencies, as it pleads for more financial support from the world to help it survive Russia’s invasion, says blockchain analysis firm Elliptic. 

    “Some Ukrainians are also turning to crypto as an alternative to Ukrainian financial institutions, which are limiting people’s access to bank accounts and foreign currency,” says Recode. 

    ​”In a scenario where governments are in chaos, it’s difficult to rely on traditional banks, and there’s fear of surveillance. So a relatively anonymous system where no government is involved is appealing,” adds Recode. 

    Cryptocurrencies were gaining traction in Ukraine even before the war took place after it passed a law in February legalising cryptocurrencies. Now Ukraine now ranks fourth in the world in terms of cryptocurrency adoption, according to blockchain analytics firm Chainalysis. Russia was much further down, in 18th place. 

    Russians may use crypto to avoid sanctions 

    Another school of thought is that Russia, which has been slapped with a host of sanctions in the last week, including being banned from SWIFT and being restricted from selling foreign reserves, could use cryptocurrencies to reduce the impact of being financially cut off from the world. 

    Crypto could be a way for the Kremlin to transact with the world even after being financially isolated. That is the view of OANDA’s market analyst Edward Moya who thinks Western sanctions against Russia are “bolstering the argument for blockchain products that will compete with the SWIFT network”.

    This isn’t the first time the world fears that a country may use cryptocurrencies to avert sanctions. The US and many other nations have long accused Iran of using bitcoin to avoid the sanctions it faced because of its nuclear activities. Indeed, earlier this year, Iran was said to be building a cryptocurrency called Ramzarz to help businesses make international transactions

    Russia has been developing the digital rouble as a central bank digital currency (CBDC) since October 2020, and is committed to piloting it in 2022, according to CoinDesk. 

    “Similar to how Covid accelerated a lot of digital economy and stay-at-work adoption, this aggression by Russia and the West’s response in terms of sanctions and freezing of reserves, might accelerate the adoption of alternative payment channels and self-custodial stores of value,” says Lyn Alden, founder of investment firm, Lyn Alden Investment Strategies. 

    But using cryptocurrencies in wartime isn’t easy 

    While cryptocurrencies may seem like a blessing in times of war, in reality using it is far from simple. Given the volatile nature of the market, donation amounts cannot be guaranteed, as Ukraine may receive less than was initially donated if the value of the cryptocurrency suddenly falls. 

    Also, using cryptocurrencies is likely to require an internet connection, something which cannot be guaranteed as Russia intensifies its shelling of various cities. And not everyone is familiar with the nuances of the crypto market, so starting to learn that during war may not be the best time. 

    Another risk is the uncertainty behind making a withdrawal. Imagine taking money out of a cash machine, only to realise your funds have lost half their value just minutes later. But for somebody living in a city under fire, having an alternative to cash may be useful. 

    Cryptocurrency exchanges have so far refused to ban Russia 

    Ukraine’s vice-prime minister, Mykhailo Fedorov, along with the EU and US, has called for cryptocurrency exchanges to block the addresses of Russian users. 

    “It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicians but also to sabotage ordinary users,” tweeted Fedorov. 

    Crypto news & Views

    So far most cryptocurrency exchanges have fallen short of committing to an outright ban on Russian transactions with exchanges such as CoinBase, KuCoin and Kraken saying they would only do so if they were legally required to do so. 

    Binance said it won’t implement an absolute ban, but it will take action against Russian individuals subject to sanctions. 

    Cryptocurrencies may not be the gold 2.0 inflation hedge many claim, but the fighting between Russia and Ukraine has demonstrated that it can be used as a short-term solution in times of great uncertainty and, love it or loathe it, it is here to remain in one form or another.

    Read full story on MoneyWeek

    Cryptocurrencies
    Previous ArticleBitcoin returns to test $40K as macro factors pile up to squash BTC bulls
    Next Article Japan Looks to Plug Potential Crypto Holes in Russia Sanctions

    Related Posts

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 20221 Min Read

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 20223 Mins Read

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 20224 Mins Read

    Two Senators propose crypto legislation for tax exemption on capital gains

    May 1, 20225 Mins Read

    Wall Street Reluctantly Embraces Crypto

    May 1, 20225 Mins Read

    Warren bill draws outcry over broad terms, but seems unlikely to pass

    March 20, 20225 Mins Read
    Add A Comment

    Leave A Reply Cancel Reply

    Donate to RareHippo Now!
    Latest News

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 2022

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 2022

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 2022

    Two Senators propose crypto legislation for tax exemption on capital gains

    May 1, 2022

    Wall Street Reluctantly Embraces Crypto

    May 1, 2022
    Follow US & Win Prizes
    • Facebook
    • Twitter
    • LinkedIn
    • Pinterest
    Don't Miss
    Blockchain & Web3

    The biggest small business story of 2021? Blockchain

    December 26, 20214 Mins Read

    The real story this year is the explosion of digital transactions that will spawn a…

    Bitcoin bulls get pushed against monthly pivot, but $50,000 is still on the card

    February 20, 2022

    Novogratz Says Bitcoin Risks Sliding More Before Seeing Support

    December 15, 2021

    Solana-based programmable cash stream protocol Zebec raises $15 million

    February 23, 2022

    Subscribe to Our Newsletter

    Get the latest crypto news right into your email box. No spamming. We hate it too. Only pertinent news you need to know

    Crypto news & Views
    Facebook Twitter Pinterest LinkedIn
    • Home
    • Privacy Policy
    • About Us
    • Donate to RareHippo
    • Get In Touch
    • NewsWire
    © 2023 RareHippo. Powered by 8 Dimensions

    The content of this website is for informational purposes only and is not intended as a substitute for investment or financial advice.

    Type above and press Enter to search. Press Esc to cancel.