Ukraine adopts and legalises cryptocurrency

By the end of 2021, about 103 had considered cryptocurrency as one of the possible futures for their country. These countries had instructed their government bodies in charge of money and financial stability to investigate the effects adopting cryptocurrency would have on their economy. Although the number increased in 2022 after the United States of America and a few others joined the list, only a few countries have legalised cryptocurrency and adopted the currency as a legal tender for transactions. Three of these countries include Paraguay, Venezuela and Anguilla. 

These are not considered among the most powerful or wealthiest countries on the planet, but adopting cryptocurrency might be their ticket to improving their financial situation and quality of life in the country. In the last few weeks, the only news from Ukraine has been about the war between them and Russia. There has been no news on new policies or other government functions in the country until the 18th of March, 2022. On this day, the president of the country, President Zelenskyy and his government legalised cryptocurrency in the country. This makes Ukraine join a handful of countries that have legalised cryptocurrency and allow using the currency as a legal tender for transactions. Although the legalisation of crypto means people can use the currency to trade for goods and services in the country and improve the economic situation, Ukraine had other factors that led to the legalisation of cryptocurrency. 

The main reason cryptocurrency was legalised in the country was due to its ability to boost the country’s potential to defend itself from Russia in the ongoing war. After the war broke out, people, governments, and organisations worldwide did not support Russia and wanted to help Ukraine defend itself. Many organisations and governments have sent out medical supplies and weapons that have helped a lot. But other people and organisations without access to weapons and medicine wanted to help fund Ukraine. The easiest way to do so during a war was through cryptocurrency. 

So far, Ukraine has received over $200 million in donations worldwide, including from Russian citizens who do not support the war. The donations have helped the country buy more protective gear for the soldiers and more medicine to treat the wounded in battle. Some of the other actions taken after the law was legalised include that the Central Bank of Ukraine would regulate cryptocurrency. This means that crypto value and transactions would be regulated to protect the citizens and ensure people use crypto to perform legal actions in the country. 

President Zelenskyy and his government had goals when they legalised cryptocurrency. This included allowing easy transactions from well-wishers who wanted to fund them during the war. Moreover, he wants the government to use crypto to purchase supplies. The second was to help people have employment or business opportunity after the war ended. 

After the war, the country’s economy will need to be rebuilt. The citizens could use cryptocurrency as an investment opportunity and make money to help themselves and the government. The third reason was to hold and improve the value of the local currency. Converting the currency to crypto means even if the local currency losses its value, their money stills holds its value in cryptocurrency accounts.

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