The Russian-led war in Ukraine and the imposition of a limitation on fiat currency withdrawal has accelerated the formal integration of bitcoin and cryptocurrencies into the local financial ecosystem. This is the reason why digital assets sell for a bit higher prices there than elsewhere.
Less fiat, more crypto
On February 24, the National Bank of Ukraine imposed a limit on daily withdrawals of 100,000 hryvnias, or $3,350, with the aim of keeping control over cash leaving the country. Right after the statement from this banking institution, the country saw a spike in cryptocurrency transaction volumes. Kuna, the Ukrainian crypto exchange, confirms this spike based on its hryvnia and Russian ruble trading data.
Coingecko provided more precise figures concerning this evaluation: in Ukraine, the volume of transactions had increased from 1.4 to 4.8 million dollars on occasion. In other words, the war started by Russia has allowed the platform to experience the most sharp rise recorded since May 2021.
Note that most of the trading pairs used are for the hryvnia (UAH).
Bitcoin, Ethereum and Tether, the most demanded currencies
Apart from UAH, BTC, ETH and USDT also saw a surge in demand after the Bank of Ukraine took action. Which, relatively, has led to the price differences mentioned at the beginning of this article.
Kuna, for example, estimated that BTC was trading at $42,106, which is $3,000 higher than the prices displayed by other crypto exchanges. The same platform also saw the Tether coin trade at $1.08, while the average price of the currency was $0.99.
On the other hand, Localbitcoins.com estimated the price of bitcoin at $43,480 a coin across Ukraine.
A “very limited” crypto supply?
The increased demand for cryptocurrencies in Ukraine, coupled with the fall of the local currency, has made bitcoin and other crypto assets expensive to buy in the region.
Michael Chobanian, founder of Kuna Exchange, believes that “ the majority of people have nothing to choose but crypto. People have cash, and they want to buy crypto, but the supply is very limited at the moment. »
An assertion that many of the Ukrainians will not deny since they have understood how beneficial cryptocurrency holdings are in times of war.
To say that before this Russian military invasion, the country did not display the slightest pro-crypto attitude. With the rain of spin off brought by crypto assets, the local government decided to legalize them. Now all Ukrainian investors and companies have easy access to digital assets.
And it’s not just these players who are benefiting from the crypto windfall in Ukraine. We will also mention NGOs and volunteer groups who have seen their cash flow enriched after transferring crypto funds. What if African countries, in perpetual crisis, also began to seriously consider this integration of cryptos?
Source : Be In Crypto