On February 24, 2022, a message came that several of us thought we would never receive . After many years of unrest, Russia had invaded Ukraine, and there was official war in Europe.
The Russian-Ukrainian war, which has been going on since 2014, has had devastating consequences for both countries. Both Russian and Ukrainian soldiers have been killed as a result of Russia’s actions in Ukraine. The rest of the world is clear that you simply can not let this pass.
Russia’s invasion of Ukraine has led the rest of the world to unite to impose sanctions on Russia. In connection with this, cryptocurrency has become a topic.
Cryptocurrency could be very central to the Ukraine conflict. In this article, we will take a closer look at this, and find out what role cryptocurrency could have played in this situation.
Russia is affected by sanctions
At the time of writing, it is two months since Russia invaded Ukraine, and this has led to a number of sanctions against Russia. Russia has been sanctioned by several different countries, including Norway.
The nature of the sanctions varies from country to country. These are some of the sanctions that Norway has introduced in connection with the Ukraine conflict:
- Transactions with 12 Russian state-owned companies are prohibited.
- Restrictions in connection with trade in iron and steel products – apply to both import and transport.
- It is forbidden to export various luxury goods.
- It is forbidden to invest in the risky energy sector. In addition, restrictions have been introduced in connection with the export of equipment, technology and services related to the energy industry.
- Norway has previously had a list of actors linked to Russian defense and industrial bases that are not allowed to trade with – this list has now been expanded.
- Russian individuals and players do not have the opportunity to use credit rating services.
Cryptocurrency can be used to circumvent sanctions
The introduction of these sanctions has led many to think about cryptocurrency. Is it not possible for Russia to use this, and thus circumvent the restrictions that all the countries of the world have imposed on them?
Since anonymity is an important and supporting factor in connection with transactions made with cryptocurrency, it is no wonder that this idea appears to many. But it is not that simple, according to Torbjørn Bull Jenssen . He is Arcane’s crypto expert:
“Many have speculated that Russia may start using cryptocurrencies to circumvent sanctions, but then one forgets that sanctions also mean that companies are not allowed to circumvent this.”
In connection with a possible circumvention of the sanctions, it is not only Russia that is responsible. If something like this happens, the company (s) that do it are equally responsible. And the way things are now, it’s illegal.
Ukrainians earn the most
But even if there is no reason to believe that cryptocurrency is used by Russia, it is not to be underestimated that cryptocurrency has played a very central role in the Ukraine conflict. And it is the Ukrainians who benefit the most from it.
As most people know, cryptocurrency is generally considered to be an alternative to traditional monetary systems. But in connection with the Ukraine conflict, more people than usual have used this system – in an attempt to help.
Ukrainian authorities have provided addresses that can be used in connection with the transfer of cryptocurrencies, specifically Bitcoin and Ethereum . At the time of writing, Ukraine has received a total of $ 21 million in crypto, according to research firm Elliptic. This corresponds to almost 190 million in Norwegian kroner.
That is why cryptocurrency is so central
It is no wonder that this has led many to ask questions. What is it that makes people suddenly try cryptocurrency – a form of currency that they may have been quite skeptical about in the past?
There are several reasons why cryptocurrency has become so central in people’s attempts to help, but the most important is probably that the transaction takes place immediately – that is, immediately .
The Ukrainian people are suffering and they need help fast. People want to help, and are therefore dependent on using a method that makes it possible. And cryptocurrency is a good example of that, because such a transaction takes place in just a few seconds.
Ukraine in the top tier
Cryptocurrency also played an important role in Ukraine before Russia invaded their country as well .
Ukraine is in fact one of the countries that has embraced the crypto universe very quickly. At the time of writing, they are at the top tier when it comes to the use of cryptocurrency per capita.
They can access this account wherever they are, as long as they remember their password!