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

Bhushan Akolkar
February 28, 2022
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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.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.