When the Central Bank of Ukraine began restricting all cash transactions, its citizens in the war-torn country turned to crypto. As a result, users are buying large amounts of stablecoins.

People in Ukraine are switching to using cryptocurrencies

According to recent reports, USDT is currently trading at a 5% premium on popular Ukrainian crypto exchange Kuna. Amid the current hostilities, the Central Bank of Ukraine has banned foreign currency transfers at retail bank branches. They also restrict the mechanism for transferring cash domestically.

As a result, Ukrainians began to rely on cryptocurrencies for everyday transactions.

Kuna, a popular crypto exchange in the Eastern European country, said domestic buyers are tending to switch to Tether – USDT, a stablecoin pegged to the US dollar.

Kuna CEO Michael Chobanian said that Ukraine’s local currency is at a low level and confidence in the banking system has been lost. “Most people have nothing to choose from other than cryptocurrencies“, he added.

In addition, Ukraine receives large donations in Bitcoin and Ethereum from Russia after the military attack. This electronic post has been increasing day by day, showing that both the domestic and international crypto community are looking to Ukraine.

Ethereum co-founder Vitalik Buterin has condemned the recent Russian attacks on Ukraine.

The Ethereum creator tweeted that the invasion was a “crime” against Ukrainians and Russians, adding: “Glory to Ukraine.” Buterin later retweeted an Unchain.fund announcement targeting humanitarian aid.

Even in Russia, when the rupee was in crisis, a large proportion showed more interest in Bitcoin and other cryptocurrencies to protect their savings.

Ukraine wants crypto exchanges to block Russians

Deputy Prime Minister of Ukraine Mykhailo Fedorov tweeted on Sunday (February 27) that local crypto exchanges should ban accounts of Russian users. Deputy Prime Minister Fedorov wrote in his tweet:

“I urge all major crypto exchanges to ban addresses of Russian users. “It is very important not only to freeze addresses of Russian and Belarusian politicians, but also to sabotage ordinary users,” he said.

However, some market analysts dismiss this view, arguing that it is not right to target Russian civilians in this regard.

Russia has faced a series of sanctions following its attack on Ukraine last week. Cryptocurrencies have become a key issue amid the ongoing conflict. Even Russia is considering legalizing Bitcoin and other digital currencies as an asset class. Cryptocurrencies have the potential to play an important role in the global financial ecosystem due to their decentralized nature.

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