Ukraine parliament backed in final reading an updated bill to legalize bitcoin and cryptocurrencies.
Bitcoin is legal in Ukraine as its parliament approved in final reading a bill that caters to the president’s recommendations. However, the country has not made bitcoin a legal tender.
“The new law is an additional opportunity for business development in our country. Foreign and Ukrainian crypto companies will be able to operate legally, and Ukrainians will have convenient and secure access to the global market for virtual assets,” Mykhaylo Fedorov, Ukrainian minister of digital transformation, said in a statement.
The recent legislation could not come at a more appropriate time. Since the start of the conflict and international crisis last week, Bitcoin and other cryptocurrencies have become a strong support for the Ukrainian government and its people.
The exchange founder declared the funds were going to be delivered to the people who were being evacuated and required basic needs. Also, petrol, food, and water were provided for the military personnel on the front line.
Unexpected Donations Offered in Crypto
They enable fast, cross-border donations, bypassing third-party financial institutions that might block payments. Using cryptocurrencies is not the most straightforward operation and learning how to transact digital assets at a time of crisis might be more time-consuming and burdensome than ever, also due to the inevitable little reliability of the internet connection.
However, considering that the country has already been a notable user of cryptocurrencies, more people than we think might ultimately resort to them.
The Market Reaction
In the last few days, Bitcoin and the whole market have experienced a nice price surge – supported by soaring Russian and Ukrainian trade volumes – which has encouraged the local users to direct their money and savings to digital assets with no regrets.
Bitcoin has proved to be more convenient as a store of value than gold which has recorded very little increase in the seven days of the crisis, of about 1%, in contrast to Bitcoin’s surge of 16%.
Converting money into crypto is surely a better choice than storing value in the Ukrainian currency, while the country’s economy collapses under the new political situation.
On Feb. 24, the Ukrainian government imposed martial law, and banks had to suspend electronic cash transfers and digital payments through channels like Paypal and Venmo.
ATMs were soon assaulted by citizens trying to withdraw the money to pay for essential living goods or even leave the country.
The Ultimate Choice
Instead of leaving the country with no money in cash form, refugees can get through borders with cryptocurrencies without asking anyone’s permission. Even if the host country’s exchange and ATMs accounts are not easy to set up, cryptocurrencies offer users multiple options, including P2P transfers and making direct payments in shops and retailers who accept crypto.
It’s not easy to predict what the future holds for Bitcoin and if its valuable use case is confirmed by future events. At present, those who have supported the new monetary system are appreciating its outcome, and maybe, for the first time in history, people holding tight to their own savings and financial tools during a crisis is not a utopian condition anymore.