Thursday, May 19, 2022

Ukraine’s central bank clamps down on digital money transfers in the country.

The Takeaway:

Amid the escalating ongoing war, the Ukraine central bank is clamping down on digital money transfers in the country as it banned electronic cash transfers.

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The Ukraine central bank, amid an escalating war, is clamping down on digital money transfers in the country. This measure was enforced as the nation declared martial law. In its official statement, the National Bank of Ukraine noted, “banks – issuers of electronic money to suspend the issuance of electronic money, replenishment of electronic wallets with electronic money, and distribution of electronic money.”

 

Ukraine bans transfers of electronic cash. 

Accordingly, this could be referring to fiat money maintained in digital accounts held in payment systems such as Paypal. While the country imposes new monetary restrictions in light of geopolitical turmoil, Ukrainians are now looking to crypto. Consequently, a well-known Ukrainian crypto exchange, Kuna, is showing that buyers are shelling cash for Tether’s USDT stablecoin, which is pegged to the price of the U.S. dollar.

Michael Chobanian, the founder of the crypto exchange Kuna, said, “We don’t trust the government. We don’t trust the banking system. We don’t trust the local currency. The majority of people have nothing else to choose apart from crypto.”

 

Ukrainian hryvnia falls to an all-time low.

While the Russian ruble suffered noticeably more, the Ukrainian hryvnia also fell, targeting 30 per dollar to hit a new all-time low. Ukraine, which just this month finally ratified a law legalizing cryptocurrency after much to-and-fro between lawmakers, unsurprisingly saw interest in alternatives snap higher. As per the CoinGecko data, the fervor has already begun to subside after the initial rush, this coinciding with stabilizing fiat rates versus the U.S. dollar and other major currencies. At the time of writing, BTC/USD traded at $38,300 on Bitstamp, while Kuna’s USD pair was over $40,000. Stablecoin Tether, on the other hand, was at $37,800 per bitcoin. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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