In the time of war, it seems crypto is proving to be beneficial for both Ukraine and Russia as both of them are buying crypto like never before.

As the war wages on, it has come to notice that millions of dollars have started to flow into Ukraine in the form of crypto donations to support Ukraine’s army and several hacktivist groups supporting Ukraine. Further, the Ukrainian government has also officially started to accept crypto donations and has raised more than $15 million. Plus, it has been found that Ukrainian citizens have also started to shift their finance towards crypto rather than depending on the Ukrainian financial fiat system.

In the same way, it seems the Russian citizens have also started to depend on crypto more rather than their own financial fiat system. Plus, as the global restrictions on Russia are getting tighter and tighter, the government itself may find it beneficial to depend on crypto transactions to get relief from all those economical blockades imposed by other countries.

What are the reasons for the sudden increase in dependency on crypto?

Well, the answer to this is pretty simple, if you remember the Afghanistan crisis where the Taliban had forcefully taken over the country. You would have noticed that at the end of the whole ordeal the country’s financial system had totally failed, leaving the citizens unable to access their own funds and further, making the Afghan Afghani (AFN) lose its value almost out of existence.

In the same way, the Ukrainian and the Russian citizens fear the same for the ongoing war situation and hence, they have thought of moving most of their funds from the traditional financial system to the crypto network (mostly stablecoins) to protect their funds from being blocked or getting devalued just in case their traditional financial system fails. Plus, in case of a need of leaving their own countries or locations, they would be easily able to transfer or access their crypto funds from any location of their choice providing they have a basic internet connection.

On the other hand, the Russian government too may think about using crypto to move their funds for official matters to avoid and bypass most of the restrictions imposed on them by foreign nations due to them invading Ukraine. As crypto is mostly untraceable and provides anonymity. This step would greatly help them to do business with other major players with discretion by helping them to do operate from the shadows without alerting anyone of them breaking any restrictions. But, as per the experts, the Russian government may not be ready for such a big leap as the crypto infrastructure required for handling such great deals or transactions is not yet present in the country and further, the country didn’t even show any interest in developing the crypto sector or even bringing in basic regulations in the past. Hence prompting, the fact that Russia has no interest to come into this field anytime soon.

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I am an avid tech lover. I mainly write articles on technology & crypto-related topics.