According to the specialized website CoinDesk, bitcoin strengthened by ten percent to about $ 43,780 on Tuesday around 16:00 CET. Since the beginning of the Russian invasion of Ukraine, the price of the most famous cryptocurrency has strengthened by about 13 percent
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The daily volumes of bitcoins traded for rubles since last Thursday increased by 259 percent to 1.3 billion rubles (over 291 million CZK) compared to the previous day.
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In Ukraine, the cryptocurrency exchange Kuna recorded a more than threefold increase in the daily trading volume to 150 million hryvnia (CZK 113.8 million). As a result of the war and Western sanctions, a trend has emerged in which bitcoin is used to transfer value, said Bea O’Carroll, who runs Radkl, a company that invests in cryptocurrency assets.
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“Basically, it’s really interesting to have a currency that is not controlled by the government and is not affected by emergency measures,” she said. She also reminded that through cryptocurrencies people try to get its value to the invaded country, and thus help the Ukrainians.
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A tool for oligarchs?
“Bitcoin could be a potentially safe haven for Russian oligarchs who evade sanctions because bitcoin networks and cryptocurrency transactions will not be affected by censorship,” said Swissquote analysts. “Cryptocurrencies could act as a solid store of value for much of the assets, which may not be liquid,” they added.
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“If someone keeps their cryptocurrencies on their own wallets, then they can send them wherever they see fit. What states can affect is contact between cryptocurrencies and banks. Typically, they can demand the freezing of the money of specific people on cryptocurrency exchanges, which are obliged to identify clients and do so relatively strictly, “said Jakub Jedlinský from Altlift for SZ Byznys.
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Jedlinsky notes that the Canadian prime minister proposed something similar to his own protesting citizens this month. And the Russian government, which prepared its own regulation a few days ago, is thinking in a similar way. “We don’t even have to fight anyone with this thinking and we lose anyway,” adds Jedlinský.
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Opinions differ as to whether bitcoin can become a safe haven on a larger scale, ie in the form of digital gold. Zach Friedman of Secure Digital Markets believes that the gains of bitcoin after Russia’s invasion of Ukraine help to enforce “the narrative that bitcoin retains value in turbulent times.”
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The fact that possession of cryptocurrencies offers a way to circumvent sanctions could be twofold for their supporters. “It could lead to regulations by NATO countries against the use of cryptocurrencies,” said analyst Katie Talati of Arca, which manages digital assets. “On the other hand, there could be a wider acceptance of cryptocurrencies in places with geopolitical unrest,” she added.
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