The impact of the war in Ukraine and Russia: 5 facts about crypto and NFT you need to know

The impact of the war in Ukraine and Russia: 5 facts about crypto and NFT you need to know

Russia’s invasion of Ukraine is considered the strongest military operation in Europe since World War II. It is the first crypto war in the world because both governments are taking advantage of cryptocurrencies.

Cryptocurrency donations for Ukraine How funds come from Bitcoin, Ether, PolkaDot and NFT, the total amount raised reaches $ 52 million. While analysts claim that Russia can use cryptocurrency to circumvent sanctions and the international banking system, Ukraine used digital currencies to raise funds for emergencies.

In the last few days, the conflict in Ukraine and Russia has been on trend on social networks, despite countless humanitarian efforts announced by the countries. In particular, the crypto community has been a vital part of trying to help Ukraine amid all this confusion and information overload.

1. NFT for the greater good in Ukraine, Russia War

Many NFT platforms have managed to collect works by many Ukrainian artists and are actively promoting sales. Furthermore, Ukrainian NFT industry has a list of all Ukrainian NFT artists. They also had their papers and links ready to buy. Most of them contain links to popular NFT platforms such as OpenSea, Foundation and others.

2. “Encrypted spirit”: Fighting crypto market ideas

Most crypto companies decide to cooperate after the United States introduced a policy requiring some to comply with their request to restrict transactions from Russian addresses: if sanctions were extended to individuals, they would comply.

This action provoked a heated debate in the crypto community: if crypto companies are forced to “politically” line up and freeze the accounts of their users, what will happen next?

Countries like Ukraine, on the other hand, have called on crypto companies to take sides, urging them to block Russian customers’ accounts to prevent Russia from using cryptocurrencies to avoid sanctions. DMarket, a domestic Ukrainian game NFT the trading platform will suspend the accounts of Russian and Belarusian players. This will prevent them from withdrawing their funds.

3. Cryptocurrency has the potential to evade sanctions and provide assistance

In response to Russian actions, the United States and other countries imposed economic sanctions on the country. These sanctions prohibit some companies and individuals from cooperating with each other, and those who do so are subject to penalties.

However, there is no central government bitcoin which can monitor or prevent transactions. As a result, Russian entities that want to avoid sanctions can use Bitcoin and other cryptocurrencies to send money anonymously. According to the New York Times, Iran and North Korea have similar tactics.

4. Restrictions on Internet access and digital payments

The restrictions could potentially apply to cryptocurrency exchanges and companies operating in the country. However, such regulations would not be able to regulate crypto payments between wallets that do not change.

Internet connection restrictions can also limit cryptocurrency transactions, whether taking place inside or outside stock exchanges. Some parts of Ukraine have already lost Internet service, while others fear a complete power outage.

Indirectly, there are also concerns that Russia could introduce a cryptocurrency ban or extensive restrictions. Such steps would almost certainly pave the way for the future digital currency of the central bank supporting the ruble (CBDC).

However, it seems that such restrictions will not fall into place, because it is the central bank of Russia, but the government.

Ukraine, meanwhile, has recently begun to support it cryptocurrency in the country. On February 18, Ukraine adopted a law that protects companies from bitcoin fraud and misuse, although it still does not consider cryptocurrencies a legal tender. Such favorable events can pave the way for further acceptance of cryptocurrencies.

What will the crypto market look like in the future?

When a sovereign state is threatened, a fiat currency on sovereign credit becomes inevitable. In addition, super-sovereign hard money becomes salvation. In the past, there seemed to be only gold, but now there is another alternative. The Russian-Ukrainian conflict has completely erased encrypted funds from the equation, and more people will invest in the future, accelerating the overall development of the encryption industry.

To be honest, encrypted funds continue to play a supporting and secondary role in the Russia-Ukraine conflict, with the regular financial market remaining the dominant player.

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