Which side is crypto coins supporting in the Russia-Ukraine conflict? Both.

There is no good outcome of the war; there is just the best course of action given the circumstances. Are crypto coins beneficial in the face of Russia’s invasion of Ukraine? Is it a problem? Neutral? It’s a difficult question to respond to.

Ukrainians are using crypto coins. However, there are some limits.

At the moment, at least some Ukrainians fleeing the nation appear to be bringing their cryptocurrency with them, which they expect to exchange for fiat currency once they reach safety. Others seem to be turning to cryptocurrency as a means of storing their riches while Ukraine’s economy collapses; the country’s central bank has already halted electronic cash transfers and barred Ukrainian nationals from withdrawing foreign currency. This past Friday, trading on the Ukrainian crypto platform Kuna reached its highest level since May 2021.

“Right now in Ukraine, you can download an open-source bitcoin wallet that is completely unrelated to your ID and generate an address using a QR code or an alphanumeric string,” Gladstein explained. “You may paste that to me, and I’ll send you $1,000 in a matter of minutes.”

As the crisis drags on, pro-Ukraine activists send more cryptocurrency increasingly into the nation. People — even leaders of the country’s nascent crypto sector — reveal their crypto wallet addresses and ask for donations on social media sites and apps like Telegram. One bitcoin-based NGO assisting the Ukrainian military has reportedly gathered several million dollars. Others are using crypto coins to purchase a diverse range of military equipment, medical supplies, and even facial recognition tool. Some of these fundraising campaigns have been going on for months, but they took off last week.

Also, read – Ukraine cryptocurrency donations are the finance hope in war. 

Russia can also benefit from crypto coins.

The heroic portrayal of crypto in crisis obfuscates the darker side of the sector by portraying it as a solution for individuals in desperate situations. It’s an essential aspect of Russia.

EVEN BEFORE RUSSIA INVADED UKRAINE, the US government was concerned that crypto coins could dilute the impact of economic sanctions. According to Elliptic, a blockchain analytics business, Iran has exploited bitcoin mining to circumvent trade embargoes.

Several countries have already sanctioned Russia. This has raised concerns in certain quarters that Russia could utilize crypto to evade sanctions and shift money unnoticed. According to the New York Times, the Russian government has been constructing a digital currency, and Russia has been developing tools to assist obscure the origins of digital transactions. In other words, if sanctions are intended to prevent countries and corporations from doing business with Russia, crypto would be a means to circumvent them. Former federal prosecutor Michael Parker told the New York Times that it would be “naive” to believe Russia hadn’t planned for sanctions and the need to find alternatives.