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Is It Safe to Invest in Cryptocurrency During the Ukraine Crisiss?

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Is it safe to invest in Cryptocurrency? It is a part of the global financial system, but there is a lot of skepticism surrounding it. Some people think that crypto is too hard and confusing for normal people to use, especially during a war. It is difficult for most Ukraine residents to access the internet, and reports suggest that even the country's elites are finding it difficult to convert their assets into crypto.

Cryptocurrency is a part of the global financial system

As cryptocurrency's prices have increased, global governments are scrambling to create central bank digital currencies. These are essentially digital forms of fiat currencies that are based on blockchain technologies. Although the U.S. dollar is still king of the world's currencies, policymakers must change to accommodate an increasingly digital financial system. Some governments have even banned their citizens from buying the petro.

Unlike traditional currencies, cryptocurrencies are decentralized and distributed ledgers. They have no central authority or bank and are maintained by thousands of computers all over the world. The decentralized structure of cryptocurrency makes it impossible for counterfeiters to create new coins. Moreover, it makes tracing transactions very easy. Because cryptocurrency is so popular, it is expected to revolutionize the global financial system. Here are four reasons why it's vital to adopt it.

First of all, cryptocurrency is an easy-to-use alternative to fiat currencies. Many consumers from the United States and European Union may view cryptocurrencies as a novelty. However, many countries are experiencing the consequences of mismanaged currencies. For instance, Venezuela's authoritarian government is notorious for sky-high inflation and ruined the living conditions of millions of citizens who don't have access to external currencies.

A key issue to consider is whether or not crypto assets are part of the global financial system. The IMF notes that crypto assets are growing in importance and popularity in emerging markets, especially after the West sanctioned Russia. Although the global financial system appears to be safe for now, the risks associated with them are greater in emerging markets and developing economies. These are important considerations for policymakers. So, what are the best ways to ensure that cryptocurrencies are not a threat to the financial stability of any country?

It can be used to evade sanctions

A report published by the U.N. Security Council revealed that North Korea is using cryptocurrency to finance its ballistic missile and nuclear programs. Another report claimed that Iran is using Bitcoin mining revenue to offset oil sales restrictions. Moreover, Russia could use the experience of North Korea, which has used state-sponsored hackers to target crypto-exchanges to steal money and launch ransomware attacks against western entities. According to Caroline Malcolm, CEO of the blockchain data platform Chainalysis, cryptocurrency could be used to evade sanctions in smaller degrees.

The recent spike in crypto trading in Russia was driven by small-time investors. It is possible that some of Putin's cronies are using hundreds or thousands of accounts to hide their digital transactions. If they're using shell companies to avoid the sanctions, they are likely evading the laws. While crypto may not be a perfect way to evade sanctions, it's still the most efficient alternative to military intervention.

During the Ukraine crisis, the conflict could show the positive side of crypto. Pro-Ukraian and pro-Russian separatist groups were able to get funding via crypto. In fact, the Ukrainian government posted appeals on social media for donations in cryptocurrencies, and the FSB is monitoring the situation. This organization is made up of the financial regulators from the Group of Twenty economies. The members of the FSB share information among each other.

While traditional forms of donations can take several days for fiat to reach a Ukrainian government account, crypto has proved to be a simpler method of payment. As a result, it is possible for non-military-eligible citizens to flee the country and its conflict with Russia. It has also been used to help pro-Russian groups raise funds during the crisis, which can be difficult to do through fiat donations due to international sanctions.

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It can be used to raise funds

If you're worried about the ongoing Ukraine crisis, don't fret! Many people in the country are using crypto as a means of saving money and converting it into local currency. There's even a crypto fund for Ukraine that was created with the help of the Kuna crypto exchange. Donations to the Crypto Fund of Ukraine have gone toward purchasing gas, food, medical supplies, and other necessities for the people of Ukraine.

There's a steep learning curve associated with crypto, and there are thousands of different cryptocurrencies. The first thing you need to have before converting your crypto assets into fiat currency is an internet connection and a working device. Then you have to figure out which one to buy, since not all cryptos work the same way. And you must have a stable financial system to convert your assets to crypto. As of February, wealthy Ukrainians found it difficult to purchase Tether, a digital currency pegged to the US dollar.

As for the cryptocurrency market, investors are concerned about the escalation of the conflict in Ukraine. The Russian invasion caught the stock market at a vulnerable time, and the ensuing war has already caused a massive spike in oil prices. Many investors fear the resulting volatility of global financial markets. However, this is a small price to pay for peace. Compared to the price volatility of other forms of investments, crypto's price has held steady throughout the Ukraine crisis.

The cryptocurrency market has been hit by a variety of recent cyberattacks. This has also affected the crypto market. In the first few days after the invasion, bitcoin dipped below $35,000. It has since recovered to more than $44,000 and is up more than 25%. As a result, crypto has become a safe haven for fast money. If the crisis continues, it could even help the country's war efforts.

It can be used to send aid to Ukraine

Many people are concerned that their crypto investments are safe during the Ukraine crisis, but it's important to remember that there is a dark side to the space known as crypto. While the "heroic" version of crypto obfuscates the ugly side, it has been seen in recent weeks. For example, one NGO supporting the Ukrainian army raised several million dollars in cryptocurrency. Several of these groups are using the crypto to purchase various items for civilians, such as food and gas.

A recent Russian invasion of Ukraine has shocked the world and upset the global order. The country's citizens are now lining up to help the Ukraine. As a result, the world is rushing to lend a hand. Many of the people have seen their lives and economic prosperity erode and are unsure if they can continue to survive. But crypto is a great option for many people escaping the conflict. If you own crypto in the United States or other major currency exchanges, you can transfer it to a new country.

If you live in Ukraine and wish to contribute to the country's reconstruction, consider donating crypto. While it's a relatively new currency, it's still growing in popularity. Ukraine recently legalized cryptocurrency, which prompted the government to release several video ads aimed at recruiting tech start-ups. FTX's chief executive Sam Bankman-Fried said that he and his team donated $25 to every Ukrainian on the crypto exchange.

Although the Ukraine crisis is causing a rout in the cryptocurrency market, it's not affecting the safety of your crypto investments. The currency's value has been driven up by the Ukrainian government's crypto fundraising efforts. However, cryptocurrency donations are not the only way to support the Ukrainian military. There have been many reports of dozens of crypto donations to the Ukrainian army from across the globe. During the war in Ukraine, crypto donations are one of the fastest ways to send humanitarian aid.

It can be used to raise funds for pro-Russian groups

The Ukrainian government recently launched a website for the crypto-based fundraising effort. The site explains that it accepts various cryptocurrencies, including the meme-inspired dogecoin, along with fiat currency donations. However, it must be noted that Ukraine's government does not yet have the funds to make all purchases in crypto. As a result, some donations must be converted to fiat currency for purchasing supplies.

Ukraine has been using crypto for a variety of purposes, including raising money for humanitarian aid. The Ukrainian government has received $22 million in crypto donations to buy supplies, and it has raised more than $3 million in cryptocurrencies through non-financial transactions. Pro-Russian groups have successfully raised funds through traditional currencies, too. Indeed, one Ukrainian group was banned from Patreon for using crypto to raise money for military equipment.

The United States has demonstrated growing sophistication in tracking illicit crypto funds, and this may dissuade Russian interests from using cryptocurrency as a cover to avoid sanctions. For example, in the 2016 hack of the Colonial Pipeline, $3.6 billion worth of bitcoin were seized by the Justice Department. Another example is the 2016 shutdown of the Colonial Pipeline, which caused fuel shortages on the East Coast.

With the sanctions affecting Russia's economy, many people are wondering if cryptocurrency could be used to circumvent the sanctions. Moreover, cryptocurrency has the potential to hide digital transactions and even allow Russia to use a digital ruble. In addition to this, many analysts believe that the Russian government could use crypto to evade sanctions altogether. Reuters has labeled crypto as a "conflict currency."

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