Russia’s Invasion of Ukraine: Bitcoin Set to Play a Role on Both Sides

cryptonews.com:

Bitcoin (BTC) and crypto are likely to play a role in both sides of the conflict after Russia launched a full-scale invasion of Ukraine.

International media outlets including the BBC, which reported from Kyiv, have stated that large lines were forming at banks in the Ukrainian capital, with citizens desperate to get their hands on money before troops reach the capital.

In an address to the Russian people, president Vladimir Putin spoke of “ensuring the security of Russia itself.”

The BBC also claimed that a raft of new sanctions was on their way from the UK government, which has already blocked business from two of Russia’s state-owned banks and five individuals linked to Putin. And mutual banking restrictions are already driving crypto buying upwards.

Speaking to CoinDesk, Michael Chobanian, the founder of the Ukrainian crypto exchange Kuna,stated that there was now a “limited supply of tether (USDT)” and that limits had “pushed up the exchange rate to a sizeable premium.”

He said:

“In terms of financial panic, yes, there is panic. [Ukrainians] want to get rid of cash.”

With more sanctions almost certainly on their way in the coming hours from the United States, the New York Times suggested that Russia could turn to “crypto, ransomware and [the fortcoming] digital ruble” in a bid to dodge sanctions.

As a digital ruble is still a long way from a rollout, conventional crypto is a far more likely avenue, particularly considering the fact that much of the world’s crypto mining hashrate is located in Russia. The nation could also divert more of its energy reserves to crypto mining.

Ukraine’s foreign ministry called for Russia to be hit hard with sanctions and to be cut off from the SWIFT banking network.

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