It’s no secret governments and central banks don’t like Bitcoin or the Crypto industry… but...
Ukraine & Russia: Is Crypto A Force Of Good Or Evil?
There is a lot of confusion about the situation in Ukraine and Russia—especially regarding the role of cryptocurrency.
And a lot of questions have been raised, questions such as:
- Is Russia using Bitcoin for evil?
- Is this how Russia is evading sanctions?
- Is crypto funding Ukraine's defensive efforts?
This a good news / bad news situation. Let's start with the good news:
Ukraine is using Bitcoin and other cryptocurrencies to fund its war effort, save human lives, and fund ongoing expenditures.
In fact, the government is openly asking people across the entire world to donate Bitcoin and ETH on Twitter:
The Deputy Minister of the "Ministry of Digital Transformation" (which sounds like something out Harry Potter or the Matrix) has stated Ukraine has nearly $100 MILLION in crypto from people around the world (source).
These funds are being used to purchase bullet proof vests, food for the troops, fuel, and "non-lethal" weapons for the war effort.
However, it would be naive to believe Ukraine is not using these funds to also buy weapons to combat the Russian military.
While Russia has isolated Ukraine from the outside world, the global community has stepped up by flooding Ukraine with the resources it needs to stop the Russian invasion.
Ukraine has now fully legalized cryptocurrency within the nation's border and is leading the world in state, legal, and economic adoption of Bitcoin.
Even in the midst of a war with Russia, the Ukrainian government has legalized the use of crypto (source).
Because the Ukrainian people are realizing the power of decentralized digital currencies and property.
Fun Fact: Even pre-dating the Russian invasion, Ukraine is ranked among one of the top countries for Bitcoin adoption in terms of trading volume and on-chain activity (source).
Is Russia using Bitcoin to fund their war?
Meanwhile, in Russia, their economy is collapsing – the war is dragging on longer than many thought and economic sanctions are stifling crushing the Russian economy.
They have no choice but to rely on oil production and China for funds. But how long can oil and China sustain a collapsing economy as large as Russia’s?
This may push Russia to consider cryptocurrency as a method to escape economic sanctions. They've already begun accepting gold and begun speaking with China about leaving the behind the U.S. Dollar.
Whether you agree or disagree with the financial sanctions against Russia, the world now has reason to pause and reconsider the reserves on their balance sheets.
Is it wise to have so many assets denominated in U.S. Dollars when the world can simply choose to shut your country off from the global financial system?
These sanctions could accelerate the decline of the U.S. Dollar as the world's reserve currency.
Either way - Let's not allow Russia or China to embrace Bitcoin before the United States.