Ukrainians Buying Tether (USDT) at 5% Premium as Central Bank Shut Doors on Local Currency

The war-ridden country of Ukraine has seen its citizens moving to crypto as Ukraine’s central bank has started putting restrictions on all digital cash transactions. As a result, users have been buying blockchain-based stablecoins in big numbers.

As per the latest report, Tether’s USDT stablecoin is currently trading at a 5% premium on Ukraine’s popular crypto exchange Kuna. Amid the current war situation, Ukraine’s central bank has banned the issuance of foreign currency at retail bank branches. They have also restricted the cash transfer mechanism in the country.

As a result, Ukrainians have started relying on crypto for day-to-day transactions. Kuna’s CEO, Michael Chobanian said that Ukraine’s local currency is low and the trust for the banking system is lost. “The majority of the people have nothing else to choose apart from crypto,” he added.

Besides, Ukraine has also been receiving heavy donations in Bitcoin and Ethereum after the military attack from Russia. Ethereum co-founder Vitalik Buterin has condemned the recent attacks by Russia on Ukraine.

Ukraine Vice PM Urges Crypto Exchange to Block Russian Users

Ukraine’s Vice Prime Minister Mykhailo Fedorov tweeted on Sunday, February 27, requesting local crypto exchanges to block accounts of Russian users. In his tweet, Vice PM Fedorov wrote:

“I’m asking all major crypto exchanges to block addresses of Russian users. It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicians, but also to sabotage ordinary users”.

However, some market analysts have rejected this viewpoint stating that it would not be right to target Russian civilians in this matter.

Russia has been facing a slew of sanctions post its attack on Ukraine last week. Crypto has taken a center stage amid the ongoing conflict. Even Russia was mulling to make Bitcoin and other digital currencies legalizing them as an asset class. Crypto is likely to play a pivotal role in global financial ecosystem due to its decentralized nature.

About Author

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.