The people of Ukraine and Russia rose to a conflict that neither of them had agreed to.
Russia was subjected to immediate international penalties, plunging stock markets, and a collapsing national currency at more than 100 rubles per US dollar (trading at 84 at time of writing).
Sanctions were imposed on five major Russian banks, including the largest and most state-backed institutions, such as Sberbank and VTB. They are also barred from using the SWIFT system.
Sanctions on Russia
International sanctions are intended to harm the whole country, and as a result, innocent people and small enterprises suffer the most. They seldom inflict harm on people who are ‘in power.’
Many Russians, especially those residing in other countries, we’re unable to use their Russian bank cards or access their cash.
Could it be a coincidence that the crypto market increased by almost 10% that day as a result of widespread anxiety and the bank-run Putin’s decision to attack Ukraine without anyone’s permission? In the past, governments in Latin America have closed people’s accounts and seized their cash without their permission.
Money kept in a bank is not your money. It belongs to the government and the bank until you can claim it again. Your capital is significantly safer if you store it securely in a cold wallet and keep your own keys.
Impact on cryptocurrency
Argentina’s government has a history of imposing limitations and policies. For example, in 2001, all US dollar and peso accounts were blocked for 90 days, and peso accounts could only be withdrawn in modest amounts. Due to the severity of the financial crisis, the government took pension money later that year.
That’s why there is no surprise by the rapid growth of cryptocurrency acceptance in Latin America. People realize the value of financial independence.
Sanctions will create huge economic harm to Russia that we have yet to witness. Russia has always been an interesting country in terms of fintech adoption since it does not require any currency at all. The adoption of cryptocurrencies has always been relatively strong.
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The post <strong>Crypto future: know-how Russian-Ukraine war crises will affect cryptocurrency</strong> appeared first on The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News.
Source: https://www.thecoinrepublic.com/2022/03/26/crypto-future-know-how-russian-ukraine-war-crises-will-affect-cryptocurrency/