We’ve discussed Ukraine and Russia war many times over the past few weeks on Invstr Crunch, and we’ve also discussed crypto from different angles, however, we’ve not discussed the two together. So, how does this conflict affect cryptocurrency? Well, for one, crypto’s have become a major vehicle for donations to Ukraine. Indeed, Ukraine has raised over $60 million in crypto to fund its war efforts amid the conflict with Russia. The assets include everything from crypto (mostly Bitcoin and Ethereum) to non-fungible tokens (NFTs). All of these have been used to support Ukraine military, displaced families, children caught in the middle of conflict, and other areas.
Beyond the current crypto ecosystem and its involvement in helping Ukraine, some in the financial industry have made projections for what the conflict means for crypto itself. One evolution takes form with the potential creation of a U.S. central bank digital currency. The CBDC whitepaper and Blackstone CEO, Larry Fink have specifically explained both the pros and cons of a CBDC. Explaining: “A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption,” and that “Digital currencies can also help bring down costs of cross-border payments, for example when expatriate workers send earnings back to their families.” What do you think of this potential application for cryptocurrency? And will a CBDC take shape in the next decade?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.