Crypto Stories

Central Bank of Ukraine Suspends Electronic Cash Transactions, Will It Boost Crypto Prices?

By Gitumani Talukdar
Published February 27, 2022 Updated February 27, 2022

One of the most recent steps adopted in line with a statewide proclamation of martial law is a crackdown on digital money transactions by Ukraine’s central bank. And, as Ukraine tightens restrictions on cash-transfer routes and Moscow unleashes airstrikes and ground forces, some Ukrainians resort to cryptocurrency.

The National Bank of Ukraine has ordered that issuers of electronic currency (e-money) halt e-money issuance and replenishment of electronic wallets with e-money. The written ruling further said that the distribution of e-money was temporarily prohibited.

As Russian soldiers lay siege across Ukraine, the country’s central bank has issued a slew of new recommendations. On Thursday, the National Bank of Ukraine started a slew of resolutions, including an order to stifle the overseas alternative market, limit cash withdrawals, and prevent the issuing of foreign currency from regular bank accounts. Kuna, a famous Ukrainian crypto alternative, shows that house buyers are willing to pay a higher price for Tether’s USDT stablecoin, which is tethered to the value of the US dollar.

Tether- The Most Popular Stablecoin

Tether, with a market cap of nearly $80 billion, is the most popular stablecoin, and unlike cryptocurrencies like bitcoin and ethereum, which have seen a lot of volatility in recent weeks due to rising geopolitical tensions, tether, like other stablecoins of its type, is mostly reasonably stable in value. However, because of increased demand, the current exchange rate places the value of 1 USDT at around 32 Ukrainian hryvnias (the national currency), or $1.10.

The Bottom Line

According to the Kyiv Post, Ukraine had intended to open the bitcoin market to corporations and investors before the Russian attack. Top state officials have also been promoting their crypto credentials to Silicon Valley investors and venture capital firms, but the Russian incursion has diverted attention away from these efforts.