One morning we wake up and find out that one country has just invaded another in the midst of a global financial and energy crisis, which shows once again how fragile relationships, economy and war are. Now, what role do cryptocurrencies play in all this? Well, it is a litmus test that cryptocurrencies have not had so far and that they are showing their nature and strength and how it could develop through the conflict.
First of all, since the beginning of the conflict (Russia - Ukraine) it meant a crisis at the level of stock exchanges and assets worldwide, falling by more than 30% in all initial indicators; bitcoin and the rest of the altcoins did not escape it, which meant its first measurement in times of war (so far the corrections experienced had been part of the market and its fluctuations), since by the nature of its development it is testing how far its correction can go.
As the days go by, it is raising its head again and the fear goes down a bit, and users and indicators are once again confident and are taking refuge in assets such as bitcoin; it is going up again. Let's hope for a stabilization for the good of the market, that's what we all hope for.
Now, there is another role that so far seems to give new insight to coins and tokens in the conflict, is how the countries involved profit from it.
Crypto, tokens and sanctions
Let's start with Russia, which is having an economic siege as it never imagined, being excluded from the SWIFT system in its major banks worldwide, freezing assets, closing its airspace, as well as limiting its maritime navigation, which will have a strong economic impact on its level of exports and raw materials so necessary in a giant like Russia; However, in the midst of this conflict, bitcoin, altcoin and tokenization could be an alternative for the Russian empire to circumvent these sanctions, if we add that it still has allies in the world that could help in this matter, let us not forget also that cryptography among its other benefits is its untraceable footprint at the individual level allowing transactions or receiving payments through cryptos and tokens in order to avoid or mitigate the economic impact that this conflict will bring in its economy in the immediate future.
Cryptos, tokens and supports
On the other hand, the Ukrainian government, which could benefit from financial aid through tokenization (it is already doing so), has so far received more than $4,000,000 in donations through coins and tokens, which makes tokenization and coins an alternative to defray expenses during a period of conflict such as war when FIAT money cannot keep pace with the crisis, thus providing a refuge and help in an unexpected situation.
What we can visualize is that tokenization and coins will be the alternatives that both countries will be using as a means of economic aid either to avoid sanctions or to recover and help the victims (as the case may be). This shows us a different way of how tokens and coins have been used and how useful they will be in the future and in the conflicts to come. It will dawn and we will see.
Irving