Cryptocurrency has been used in various corners of life. Shopping has been made easy with crypto. Sending and receiving money is now an easy task with crypto, and it has also enabled people to store their value, making them the owners of their own money. Regarding conflicts between various countries, crypto has come in, acting to resolve and make things possible whenever there are wars. People are enabled to pay for goods and store their value, and most importantly, the mass displaced have received help from friends through cryptocurrency. The government also accepts donations in the form of cryptocurrency, and through this, crypto manifests its strengths. There has been an ongoing conflict between Russia and Ukraine, and many people in Africa are affected in various ways. There are different products obtained from these countries in Africa. Conflicts then affect people in different ways, including a hike in prices of the available goods and loss of jobs to those who trade using the properties.
The ongoing conflict has brought up the importance of cryptocurrency and the role it plays when there are global wars. It has also tested the power of digital currencies. For this reason, economic growth may drop because people who should be developing the countries’ economies are rendered jobless and dependent.
Conflicts and pandemics may be different, but they impact the country’s economy hard. Conflicts also help people see the importance of going financially digital so that when fiat currencies institutions may not be operating in times of crisis, one is safe. Moving from the covid 19 pandemic to the war in Ukraine, which is affecting Africa strongly then, cryptocurrency is seen as very important when relying on it for various aspects. Bitcoin has been accepted in Russia as the payment method for oil and gas. In many African countries, gas and oils imported from Russia are paid for using fiat currencies. The present war has made the place not very secure to visit, and for this reason, people have remained not to access the goods until Russia considered getting payments for the goods in the form of Bitcoins. This factor has facilitated continued supply because by accepting bitcoin then, the buyers continue sending the money in crypto and receiving the goods.
Both fiat and crypto are mediums of exchange. Since independence, people have traded with fiat currencies, but there is a need to understand the usefulness of digital money when times of war comes. To be able to pay for gas and oil through crypto shows the crypto’s power. Wars led to the displacement of people. Property is destroyed, and people also lose their lives. This Russia Ukraine war has not been an exception to these consequences. Many people have been displaced, their property is lost, and they have no means to get out of the situation. Cryptocurrencies play a very vital role because people have been able to receive support from friends in the form of digital assets from friends and well-wishers. People in Africa and other continents who have relatives in these regions have been able to send them support in the form of digital assets, and they receive the money immediately without delay to rescue themselves. The Ukraine government has also benefitted a lot from cryptocurrencies. Being difficult to receive donations physically from people who can’t visit the country to help, there was an earlier tweet by the country’s official government sending a message that said that it accepted donations in the form of crypto. This appeal shows that it was not possible for the country to benefit from traditional currencies at that moment, so they turned to cryptocurrency. This message has led to a collection of over one million digital assets, and it has helped provide the country’s army with bulletproof vests, lunch to feed on, crypto for medical purposes, and helmets to use and secure themselves.
During wars, currencies collapse. It’s the case with the Ukraine war: the citizens have relied on using the VDAs for their wealth after the currencies collapsed. The VDAs have been held due to the reliance on bitcoins and stablecoins. The war is highly driving people to adopt the use of digital currencies because fiat currencies are hard to receive from financial institutions at the moment. Digital currencies serve as a store of wealth. People were storing their wealth in digital assets to use in the future if they managed to get out of the country. Cryptocurrency is manifesting itself in playing the role of storing value because storing it in fiat form is becoming next to impossible. So to ensure that one’s assets are not just lost then, they turn to open digital wallets to keep their assets safe. To them, crypto is better than a fiat currency because the government suspended bank operations at once, and for people to survive, they had to turn to crypto. Although the market requires the internet, it seems better for people with it.
In conclusion, the question of what role crypto has in times of conflict manifests itself with the present war between Russia and Ukraine. It is testing the strength of crypto. How helpful crypto is seen when the situation has led to the government and peoples’ hope being crypto donations because physical cash is hard to get at the moment. This situation indicates that though unregulated, cryptocurrency can be the only solution at times of conflict to enable a continued supply of goods. It is high time that African people learn the importance of crypto in certain times because wars are unpredictable, just like pandemics are. For this reason, crypto adoption should keep increasing so that people can turn to crypto in case of any crisis.