Witnessing the chaos unfolding within Ukraine and Russian societies brings horror to our imaginations while remembering shadows from the past. This is not the first time that the world has witnessed bank runs during a currency crisis. This may, however, be the first time a large country during wartime has undergone this currency crisis while living in the digital age.
Long lines are throughout Russia for those trying to remove as much Ruble from their bank accounts while they watch their currency slide into hyperinflation. Russian banks have doubled the Russian Interest Rate to over 20% trying to restrict the flow of money. This is only causing more chaos as additional citizens wake up to what is happening around them.
During this mass exodus of cash, the world is also witnessing a massive increase of Bitcoin purchases from the Russian Ruble. This increase in purchasing allowed for Bitcoin to increase in price by over 9% during a time when global markets were declining.
Recent countries that had their citizens witness hyperinflation showed the world that during modern currency crisis, people flock to crypto currencies. This influx is not only a fear based trade but is also a way for refugees to transport their assets during time of exodus. Prior countries also showed that many turned to cryptocurrencies to have purchasing power during economic crisis while the currency has lost its value.
World governments are already showing their authority, locking people’s bank accounts while enabling exchanges to lock individual’s accounts with no action for resolution.
As we witness individuals flocking to digital currencies from their current fiat currencies, countries will do the same. Already there is discussion that Russia may look to the blockchain to survive during this economic climactic time. The world has already witness the enabling power of crypto currencies while watching North Korea develop its missile program with stolen digital assets.
Its only a matter of time before the world powers try to lock down the blockchain. The only problem is no-one knows if that is even possible and at what cost are the powers willing to go to reach their goal.
