Russia/Ukraine, how Bitcoin is taking part of the battle?
Did the #bitcoin finally found a real and practical use case? It is sad to accept this but the reality in that Bitcoin was well designed to skip central controls and to protect from inflation, both conditions are present in any war context.
An easy way to make donations, transfer money…
As the situation become to worsen in Ukraine, the humanitarian efforts required support, sending donations at low fees was never easy than today, crypto allows a such mechanism and remove the complexity of traditional channels.
An easy way to skip the sanctions
On the other side of the war, Russia has been quickly subject to several financial sanctions from all European countries, the last one was a very severe one and touched the backbone of the russian banks by banning few banks from SWIFT protocol. As stated in the European council announcement:
On 2 March 2022, the EU decided to suspend the broadcasting activities in the EU of the Russian state-owned outlets Sputnik and Russia Today until the aggression against Ukraine is brought to an end and until the Russian Federation and its associated outlets cease conducting disinformation and information manipulation actions. It also introduced a SWIFT ban for seven Russian banks.
It is not a secret that on top of the Chinese CIPS protocol, Cryptocurrencies will be used to bypass those sanctions.
A refuge from the ongoing inflation…
With or without sanctions, this was would have a big impact on both sides economies and inflation and even beyond their limits, the inflation rates of 2022 are already forecasted to be historical. Cryptocurrencies are seen in those conditions as a refuge from the inflation…
What’s next? Will cryptocurrencies be banned?
The current condition may create a short term positive effect but it may bring eyes on the matter, this may lead to a few countries banning cryptocurrencies and mining… but if the cryptocurrencies resisted those limitations, it may be the biggest winner of this sad tragedy.