Image Source: NewsBTC
By: Michael Argenta
February 27, 2022
All eyes shifted to Ukraine this past week; as Russia officially invaded its neighboring country. Although, the world’s 22nd most powerful military, according to GlobalFirepower’s military strength rankings, is not going down without a fight. However, while Ukraine’s military is far from underfunded, it is difficult to compete with Russia, the world’s 2nd most powerful military. Therefore, private donors have stepped up to donate $4.1 million to the Ukraine in the early stages of war.
Yet, these donations are not in the form you may expect them to be. They are through everyone’s favorite non-regulated cryptocurrency, Bitcoin (BTC). In fact, Bitcoin and other digital currencies have potential to play significant roles in this conflict. While the Ukrainian military has received private funding and will likely get even more, Russia can utilize this asset too. For example, several world powers have enforced harsh economic sanctions against Russia for starting a war. However, these sanctions rely heavily on world banks to be effective, and Bitcoin is not regulated: at all. Therefore, if Russia switches to only using cryptocurrency, they will essentially be free of economic sanctions against them.
Overall, this story will be interesting to follow. Clearly, Russia knew the potential consequences of invading Ukraine, but they did not care. Is this because they knew they could utilize the world of cryptocurrency? Has crypto enabled even easier private donations to militaries like Ukraine? It would appear so. Digital assets continue to change the world, and now we see how they can even impact wars.
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