Ukraine Situation Is Driving the Global Crypto Adoption Forward

The whole world is talking about the current situation in Ukraine. The war took us all by surprise, but now everyone is trying to react to it in the best possible way. The crypto world was especially shaken by the unfolding new events. But why exactly is the blockchain ecosystem so invested in what’s going on between Ukraine and Russia?

For once, it’s worth remembering that both Ukraine and Russia have legalized cryptocurrencies shortly before the war. Digital assets are massively popular in both of these countries, so any situation involving them will automatically influence the crypto market.

One of the most important effects the war has had so far on the world of crypto involves centralized exchanges like Binance and Coinbase. Both of these crypto giants agreed to block the accounts of Russian users. In the case of Coinbase, the estimated number of locked accounts surpasses 25,000.

While some crypto investors applaud the exchanges for compliance with sanctions, others are quite concerned and think that it’s a precedent allowing Binance and Coinbase to arbitrarily lock user’s accounts in the future.

But banning Russians from Binance and Coinbase is not the only important aftermath of the war in Ukraine on the crypto market.

The crypto community is known for its dedication to charity, so its not surprising that blockchain projects and individual cryptocurrency investors were very eager to help Ukrainians in need.

Various crypto fundraising platforms have managed to quickly raise millions of dollars worth of humanitarian aid for Ukraine. Most importantly, donating funds in crypto proved to be much more functional in times of crisis than using fiat.

War has caused the fiat system in affected regions to become almost non-usable. ATMs and banks stopped working, so people in Ukraine wouldn’t even have a way to receive funds if not for crypto. War has proven that blockchain’s ability to send and receive transactions 24/7 regardless of the circumstances can truly be life saving.

Most interestingly, even the Ukrainian government itself became very interested in crypto. The official profile of Ukraine on Twitter has even posted ETH and BTC addresses where people can donate cryptocurrency directly.

On the other hand, some blockchain experts are concerned that the other side might also be using crypto to fulfill their goals. Some observers are concerned that cryptocurrencies might be used by Russian companies to evade widespread sanctions affecting the fiat banking system.

No matter what will happen in the future, the current crisis in the Ukraine has already taught us an important lesson: cryptocurrencies are not just speculative assets, but they can be massively useful when fiat currencies fail. In other words, the war in Ukraine might give a tremendous boost to global crypto adoption. ‘

Grand Time believes that teaching people about cryptocurrencies and blockchain is massively important. The current situation confirms that — in times of crisis, owning crypto and knowing how to use it can be truly life saving.