Ukrainian Govt Restricts e-Money Supply: Crypto may play a better role?

Ukrainian Govt Restricts e-Money Supply: Crypto may play a better role? 2

The government of Ukraine introduced martial law in the country, which includes the restrictions on the e-Money Supply in the country. 

In the present time, Ukraine and Russia are fighting against each other at their potential. In the fight, Ukraine seems weak against Russia. However, Ukraine has better support from other countries including America. But it seems that Ukraine is under the fear that it may face some cyberattacks on its financial system by the Russian hackers besides the losses on its properties and citizens due to this fight.

Just a couple of days ago, a few Media reports claimed that Russia may plan to hammer the financial system of Ukraine through its cyberattacks, with the help of its local talented hackers. However, reports didn’t confirm the source of the report but the latest decision taken by the Central Bank of Ukraine confirmed that Ukraine is aware of such risks. 

On 24 February, the National Bank of Ukraine introduced its new rules in the country, which included the suspension of many financial services like suspending e-money issuers, stopping the replenishment of e-wallets with e-money, and halting distribution of e-money to e-money issuing banks. 

So now all-digital money wallets will be restricted to use in the country under this situation. 

However, official statements didn’t confirm the exact reason behind these new orders, but people claimed that Russia may attack the financial system of Ukraine and under these situations, Ukraine will not take any risk.

Few experts noted that these decisions of Government authorities are showing that the existing traditional technology of the financial system is not much better and now we have to adopt blockchain and crypto in the payment system to remain away from the attacks.

Due to Russia’s military invasion of Ukraine, the crypto market saw more than $200 billion worth of funds outflow from the market on Thursday. While the Russian Ruble faced Significant correction with a net 6 year low against the US dollar. 

The downfall in the Russian Ruble is because of the announcement of sanctions on the payment and funding of Russia to outside because of its bad behaviour to attack Ukraine. Probably the Russian government will also take some suitable decisions against such sanctions of other countries like Britain.

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