Crypto is Propping Up the Ukrainian (and Russian) Economy

The world was stunned when Russia began its invasion of Ukraine. 

Far from being a geopolitical strategist, I thought at the most Russia would secure the eastern pro-Russian separatist republics of Luhansk and Donetsk. And, in fact, Russian forces moved into those two areas on February 22nd. 
But just a couple of days later, on February 24th, Russia began strategic missile strikes deep into the country — striking targets in the capital city of Kyiv itself. This was followed by a large-scale ground invasion from multiple directions. 

Many key cities and settlements have been captured or are currently under siege by Russian military forces. 
People pray for the innocent civilians caught in the crossfire in times like these. But thanks to crypto, much more is being done. 
Ukraine’s government is young and forward-thinking in many respects. They even have a “Ministry of Digital Transformation” (maybe the US can start one of its own?). And Ukraine’s president – Volodymyr  Zelenskyy – recognizes crypto as a potential economic breakthrough.
This open-mindedness has helped the Ukrainian people as close to $100 million in crypto donations have been sent to the country since the conflict started. 
Most of this has been sent to a fund run by Kuna, a major Ukrainian cryptocurrency exchange. These funds have reportedly been spent on non-lethal equipment like food, fuel, and protective equipment for soldiers. 
This is revealing tremendous utility for crypto as a tool for raising money, especially in places where it’s difficult to do so using traditional means. Last week I wrote about decentralized autonomous organizations (DAOs) and their ability to raise money for politically persecuted people and groups. 
The people of Ukraine need this help. And so do many others. 

The war is causing Ukraine’s economy to collapse. Their central bank suspended electronic cash transfers and is blocking foreign currency withdrawals in many instances. Cryptocurrency gives Ukrainians a way to send and receive currency and have a mobile store of value outside of the traditional banking system.

Popular crypto exchange FTX even gifted $25.00 to every Ukrainian account holder to spend as they please. 
Regular Russian people are struggling as well. As the West imposes severe economic sanctions, the value of the Russian ruble is collapsing. It has lost nearly half its value since the conflict started.

DPC aricle Image 3-10-22.png

And to add further injury, the government of Russia has banned its citizens from purchasing foreign currencies. Traditionally, this would have left people with virtually no options. 

But thankfully, they now have crypto.
In order to preserve some of their wealth in a liquid form, ordinary Russians are buying up Bitcoin and stablecoins as a way to get around their government’s draconian mandates. 
In the midst of all this turmoil, it’s encouraging to see crypto being used by regular people as a tool of empowerment against oppressive governments and invading armies. 

This is why — even with market volatility— it’s wise to have exposure to cryptocurrencies.

In Crypto Cycle, I’ll show you everything you need to get started, including how to set up decentralized wallets outside of the reach of prying governments.

Chris Curl

Chris Curl
Editor, Daily Profit Cycle