Ukraine legalized cryptos in the face of rising hostilities with Russia, despite the fact that several senior officials from central banks across the globe, including IMF Managing Director Kristalina Georgieva, voiced concern about the spread of speculative digital currencies.
Cryptocurrencies will be legal in the nation of Ukraine after the country’s parliament passed a legislation on virtual assets, according to Mykhailo Fedorovon’s – Ukraine Vice Prime Minister – tweet on Thursday. This, according to Fedorovon, is to safeguard Ukrainians’ financial resources from misuse or fraud.
“Ukrainians are among the most avid bitcoin users. Parliament today passed a bill on virtual assets, which is a significant step forward. This would make crypto exchanges and cryptocurrencies legal, and Ukrainians will be able to safeguard their funds from any fraud or misuse” Federal Reserve Board member Fedorovon sent out a tweet.
Researchers at the blockchain research firm Elliptic said that as Ukraine’s government becomes more concerned about a possible Russian invasion, contributions of Bitcoin to Ukrainian volunteer and hacker organizations have risen sharply in recent days. In the research, it was said that contributors are using Bitcoin in order to avoid banks and financial institutions that would have a hard time receiving payments from them.
Georgieva warned on Tuesday that unbacked cryptocurrencies would be no match for central bank digital currencies that have been carefully built from the outset (CBDCs). Cryptocurrencies are much worse than Ponzi scams, according to T Rabi Sankar, the deputy governor of the Reserve Bank of India (RBI). Sarah Breeden, the Bank of England’s executive director for financial stability, has previously advised businesses to use cryptocurrency with “cautiousness.”
More than 8 percent of Bitcoin’s market value has been wiped off in the last 24 hours, leaving the virtual currency hovering just around $40,000, down nearly $3,700 from the previous closing. Dogecoin, Shiba Inu, Solana, Litcoin, XRP, Polygon, Terra, Stellar, Avalanche, Chainlink, Cardano, Internet Computer, and Cosmos are among the other cryptocurrencies that have suffered significant losses in the last 24 hours.
