- The economic disaster caused by Vladimir Putin’s war on Ukraine has already damaged energy, oil, food and agriculture, trading, foreign exchange
- Cryptocurrency is a significant weapon for regular Russian citizens to resist financial totalitarianism.
- The number of crypto market users in Russia is expected to decline with the ruble’s value.
Russia’s invasion of Ukraine has left farmers without fertiliser, gas prices high, and stores without cooking oil. A bitcoin-centred financial slaughter lies behind the migrant crisis, sanctions, and global relationship shakeup.
The economic disaster caused by Vladimir Putin’s war on Ukraine has already damaged energy, oil, food and agriculture, trading, foreign exchange, import, and export. This battle might trim 11.2% of Russia’s economy.
It’s also alleged that Mikhail Gorbachev’s 40-year effort to build a market-based economy has failed due to Putin’s unprovoked confrontation. Since the war began on February 24, 2022, more than 300 companies have ceased or decreased business in Russia, blaming the violence.
Read More: Ben Wallace: Russia’s invasion of Ukraine is ‘mirroring’ WW2 fascism
Cryptocurrency is a significant weapon for regular Russian citizens to resist financial totalitarianism, in addition to playing an important role in this conflict. As a result, both the economy and the population of the country must bear the brunt of the consequences. Here’s a look at the impact of the feud on the internet economy.
Russia’s Multi-Billion-Dollar Crypto Industry Crippled
Despite Russia being the world’s third-largest bitcoin mining hub, US officials targeted BitRiver as a potential danger to the effectiveness of its sanctions programme. In particular, the officials expressed fear that the Russian government may monetize its massive oil and natural resource reserves through power-intensive crypto mining in order to circumvent Western sanctions.
As a commitment to ensure that no asset becomes a mechanism for Putin’s regime to offset the impact of the sanctions, US officials disabled miners’ access to US crypto exchanges or mining equipment.
Despite having 17 million cryptocurrency owners/traders, the number of crypto users in Russia is expected to decline with the ruble’s value. A blanket ban on a market where more than 12% of citizens hold cryptocurrency would penalise the whole economy.
Binance and Coinbase have terminated hundreds of Russian accounts and wallets, alleging illegal activity. Mastercard Inc. and VISA Inc. have blacklisted several Russian financial institutions from its payment gateway, and the UK, US, European Commission, and several other EU governments have withdrawn multiple Russian banks from SWIFT.
Read More: The United States and others have walked out of APEC talks over Russia’s invasion of Ukraine
Ukraine Receives Sympathy in the Form of Cryptos
Since the invasion, Ukraine has raised $60 million in bitcoin donations. The Ukrainian government welcomed donations in bitcoin, Ethereum, and tether.
After the conflict, Ukrainian President Volodymyr Zelenskyy will recognise cryptocurrency as an asset.
