Even before the start of the invasion, the conflict between theUkraine and Russia has had its share of economic repercussions. Among them, a small upheaval on the cryptocurrency market: Mike Chobanian, boss of the exchange platform of cryptomonnaies Kuna, observes today the consequences of the Russian offensive on his company.
For weeks, Mike Chobanian had seen purchases multiply on his platform in Ukraine: worried about the rise in tensions, locals were buying stablecoins, these electronic currencies backed by the dollar, often criticized by Western regulators for their opacity. “With bitcoin, it’s a form of betting, we don’t know if prices will go down or up, there we try to keep what we have. People see the dollar as a refuge, but the cash is useless: you can’t use it everywhere and all you need is a gun to steal it”, he explains to explain the attraction of stablecoins.
“There is no limit, we can raise funds around the world, without depending on the banking system”
Since the invasion, shopping has become increasingly difficult. On Friday, the Ukrainian government “imposed sanctions against the ruble, so we had to close” trading in the Russian currency, explains Mike Chobanian. “It’s a big part of our income, but we don’t care, it’s war”, slices the 37-year-old boss, interviewed by video from the place where he took refuge after leaving the capital , where fighting was reported.
On the other hand, several cryptocurrency users have launched fundraisers that they say are dedicated to the army or Ukrainian relief. More than $4 million in cryptocurrencies arrived in a single fundraising wallet for the Come Back Alive organization in two days, cryptocurrency transaction research firm Elliptic revealed Friday. “There is no limit, we can raise funds around the world, without depending on the banking system”, defends Mike Chobanian, acknowledging however that he does not know where the various fundraisers end up: “it’s war is chaos”.
Cryptocurrency as a way to circumvent sanctions?
For him, who considers himself “betrayed” by Western governments, this mutual aid system remains “a better option”. An enthusiasm that the Ukrainian government does not completely share: on the communication site UkraineNOW, the Ministry of Defense calls for donations via bank transfers, but specifies that “the legislation does not allow payments to be received in other forms (currency digital, bitcoin, Paypal, etc.). And the same decentralized network that makes cryptocurrency attractive to Ukrainian fundraisers may well benefit the Russia. Among the sanctions envisaged against Moscow, the exclusion of the Swift system, which allows interbank settlements between financial institutions around the world, is envisaged.
In this case, could cryptocurrencies allow Russia to circumvent the sanctions? ” The North Korea carried out cyberattacks with the intention of stealing cryptocurrencies from platforms, and they managed to bring billions of dollars of funds to the country, ignoring the sanctions, ”recalls Caroline Malcolm, of the analysis firm Chainalysis in a note. Iran has also used the technology to evade sanctions, she adds. But “as with the traditional monetary system, it is possible to put in place” preventive measures, in particular by analyzing data from blockchains, these registers where all cryptocurrency transactions are recorded.