Vladimir Putin has officially declared war with Ukraine. It is decided that Russia will be taken out from the SWIFT global payment system as the assault against Ukraine continues. At this stage, most Russian banks have been removed from SWIFT. Both Russian and Ukraine have been massively adopting crypto currencies for day to day transactions. Donations have also flowed in Bitcoin, Ethereum, USDT, and other cryptocurrencies in the defence of the country.
How RippleNet Crushes SWIFT
SWIFT has been around since 1974 and it does cross borders transactions. SWIFT works like an exchange of data and it takes 3-4 days typically for money to be sent to countries. It would be sent in 2 parts, the accounting information then followed by the money. With RippleNet, it totally crushed SWIFT system as it just takes 30 seconds to fully do a transaction. RippleNet works more like a value transfer where it has liquidity(On Demand Liquidity) to complete a full transaction rather than sending information over first like SWIFT. Some of Russia banks have been testing out RippleNet since they have gotten out of the SWIFT payment system.
Ukraine Could Be A Case Study
As cash transactions in Ukraine are on the decline as citizens turn to cryptocurrencies as a way out, it is very likely that they could be the first country to adopt crypto currencies completely. The usage of stable coins have spike over the last few days. The trust for the banking system and local currency is very low at the moment. Ukraine received over $7 million of donations in crypto, $1.1 million in ETH and the remaining $6 million in DOT. They are currently expanding the list of crypto currencies and will continue to accept them for donations to aid the looming humanitarian crisis.
From donations to day to day usage of crypto currencies, it is a very good case study of how payment system might look like in the near future.
Towards The De-Dollarisation Or Nowhere?
With crypto evidently being seen as a solution for today’s real world problems, it is hard not to acknowledge that crypto would find it’s fit in our world today. Since the Ukrainian incursion, Russia has also been moving along with China towards the de-dollarization. Russia sold its US treasury holdings and from its $583 billion of central bank reserves. Both see the centralised control of the global financial system by the US as a matter of national security. Many growing countries like Brazil, India, and South Africa have looked at exchanging in local currency and getting out of the dollar system.
However, some argued that crypto assets would be negatively impacted if Russia turn to them to evade sanctions. If that happens, US regulator would do whatever it takes to crush the industry in the interest to national security. Price of crypto could also get worse if either of these happen:
-China invades Taiwan
-Russia invades more countries
-Use of nuclear weapons
Final Thoughts
To sum it up, the Ukraine crisis is an eye opening event for all. It has shed light on how crypto could be utilised in a crisis. Just as how a crisis usually bring about an unexpected opportunity. The Ukraine crisis has brought about awareness for the utilities of crypto. we can definitely expect to see crypto hitting new heights from here on.
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Disclaimer:
All of these are merely my knowledge and not financial advice. Please do your own due diligence and have conviction before investing. The information above is based on many hours of research out of my own curiosity/interest in YouTube, Google, blogs and discord communities. Leveraging & filtering information from other crypto enthusiasts and analysts.
