As a consequence of the Russia-Ukraine war, the value of the cryptocurrency has taken a downward trend. And no one is sure for how long this downward trend will go. But if one follows the cryptocurrency market closely, then one might observe that prices were dropping even before the war began.
During times of war, most governments take control of money and other valuable assets, so as to pay for the war expenses. Considering the fact that the banking system has become a challenge for the people in the war zone, moving money between countries has become even more difficult. Most people are converting their money into digital assets, primarily in Tether which is touted as a stable cryptocurrency as it is designed to keep steady value. This has given them the freedom to move their digital assets between countries in a much easier and hassle-free free manner. It is for sure that this type of movement of assets without the involvement of respective governments is not good for the economy. However, considering the current scenario, the Ukrainian people have no other option. Most of them have fled the country without any money, and with just a pair of clothes.
It’s a conundrum now for the global agencies to start regulating cryptocurrencies. Since it will be a hard tussle between the government agencies and users of the decentralized currency. Though, there are doubts that a SWIFT ban alone will do any damage to Russian economy, as Russia can leverage any form of a decentralized cryptocurrency to move its economic assets in an unregulated digital form.
All forms of investments and commodity assets are taking a hit because of the Russia-Ukraine war. The implications are evident even at our stock exchanges, as both BSE and NSE are falling. It is a temporary hit, as one might say. But the people who are in the war zone are the ones who are taking the actual hit. Most of them have lost a lot, but some of them managed to convert their assets to some sort of digital currency and moved to neighboring countries for their own safety.
Let’s pray that the peace prevails soon, and the people impacted by war return to their homes safe. Those who held cryptocurrency will now see it as digital gold when they build their lives back after the war.
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