Since Russian President Vladimir Putin has ordered a full-scale invasion of Ukraine and Bitcoin (BTC) could play a role on both sides of the conflict, Ukraine seems to be better prepared to embrace the emerging currency technology.
As a reminder: in October 2021, the crypto analysis company Chainalysis ranked Ukraine 4th or higher than many countries, including the USA and Russia, in its * 2021 Global Crypto Adoption Index *.
In addition, at the end of 2021, the New York Times claimed that Ukraine processes more transactions per day in cryptocurrency than in its fiat currency on interbank exchanges. The report detailed that about $150 million worth of crypto is traded daily, while about $8 billion worth of crypto enters and exits the country annually.
And this month, the Ukrainian parliament legalized cryptoassets so that crypto exchanges can operate legally and ensure the protection of cryptoassets. Also, the related amendments to the Tax Code and the Civil Code are being prepared. At the same time, Russia is trying to legalize cryptoassets and impose several restrictions on crypto investors.
Meanwhile, data from Google Trends shows that interest in ‘Bitcoin’ in Ukraine has increased somewhat over the past day, after rising sharply today:
Some Ukrainians may turn to BTC, as the local currency, the Ukrainian hryvnia, has fallen today, while the country’s central bank has limited cash withdrawals to UAH ($3,390) per day.
At 09:30 UTC, BTC was trading at USD 35,777, recovering from almost USD34,500 reached today. The price is still down by 8% in one day and 19% in a week, erasing all the gains of the last month.
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