Cryptocurrencies are emerging as a major player on both sides of the divide in the war in Europe. Like a double-edged sword, crypto exchanges are under pressure to choose sides after the Russian invasion of Ukraine, followed by sanctions from the United States, the European Union, and the United Kingdom. While there are calls to weaken the Russian ruble, Ukraine uses digital currency to strengthen its resistance to crypto news now.
If you are interested in learning more about cryptocurrencies, you can follow the latest finance-related updates. Here we look at the top ten updates on the virtual world of cryptocurrencies in 2022, which has become an essential tool in financial transactions.
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Borderless
Cryptocurrencies are borderless and do not discriminate since governments do not regulate them. Therefore, despite sanctions may have little impact on curtailing trading of commodities in the short term. At the same time, it would not alienate either the regulators or some of their customers who support the Ukrainians through donations. So, it is a win-win situation for cryptocurrency operators facing a dilemma after being publicly challenged by the Ukrainian authorities to block addresses of Russian users. Ukrainian Vice Premier minister Mykhailo Fedorov noted it is crucial to freeze the addresses linked to Russian and Belarusian politicians and sabotage ordinary users.
Policing
Lawmakers in the United States have expressed concern about the potential use of digital assets to undermine sanctions imposed on Russia. Senator Elizabeth Warren and three other Democratic lawmakers on Wednesday urged stringent policing to ensure compliance by the cryptocurrency industry. There are concerns about using crypto wallets and dark web marketplaces to bypass the traditional financial system.
Difference
The fixed supply of 21 million coins is one of the most appealing features of Bitcoins for investors. Its scarcity gives it more excellent value, but it also poses a problem to Bitcoin miners on the remaining supply of 2.03 million. B. Riley analyst Lucas Pipes raises questions on the ultimate size of the industry and opportunity in the digital mining space. Pipes believes investors will start noticing the difference in cryptocurrency in 2022.
Game-changer
Cryptocurrencies are increasing as a tool amidst the fog of war in Eastern Europe. Crypto is playing a role in preserving the wealth of Russians as the ruble plunges under the weight of sanctions while sending vast amounts of the assets in support of Ukraine’s struggle to remain independent.
According to data tracked by blockchain analysis firm, Elliptic, the Ukrainian government and supporting non-governmental organizations (NGOs) have received 38 million in crypto assets since the Russian invasion began last week.
Technology underpinning cryptocurrencies has become a game-changer compared to traditional bank payments. Cryptocurrencies still aren’t widely accepted and used in commerce, but the war has spurred crypto-savvy individuals to step forward.
Proliferation
There has been a proliferation of blockchains from Ethereum and Solana to Tezos and Avalanche. Each comes with its strengths and weaknesses.
Polymer Labs has emerged to build infrastructure for a multi-chain future. The objective is to expand the IBC (Inter-Blockchain Communication) protocol, originally developed to provide a way for different blockchains to communicate with each other. Polymer aims to make it easier for non-IBC blockchains to interact with chains based on IBC like Terra and Osmosis.
Airdrop
The Government of Ukraine has promised to reward donors with an “airdrop” of digital assets on March 3 at 11 am Eastern Time in return for financial support. They have appealed to the global cryptocurrency community to support their fight against the Russian invasion. Their crypto donation campaign gets support from Mykhailo Fedorov, Ukraine’s Vice Prime Minister and Minister of Digital Transformation for Ukraine. It is not clear what form the ‘airdrop’ will be.
Safemoon
On Wednesday, the cryptocurrency Safemoon has been trending on social media platforms to commemorate the anniversary. While not as popular as more extensive crypto networks like Ethereum ETHUSD, and bitcoin BTCUSD, Safemoon has garnered a bit of a cult following illustrated by its celebrity endorsements by Soulja Boy, Lil Yachty, Jake Paul, and Dave Portnoy. Safemoon is a peer-to-peer, open-source cryptocurrency, similar to bitcoin and Ethereum. It features a rocket ship as its logo, possibly a “to the moon” reference popular among crypto traders.
Regulating
US derivatives overseer Commodity Futures Trading Commission may play a more significant role in regulating cryptocurrencies. President Joe Biden’s four nominees to join CFTC told lawmakers that the agency could oversee digital assets and south a budget increase of at least $100 million. The debate in Washington over which regulators should watch digital tokens is ongoing. The CFTC currently oversees Bitcoin and Ether and investigates fraud or manipulation in underlying markets.
DOGE
Ukraine announced it would accept cryptocurrency donations in dogecoin (DOGE) in addition to SOL and DOT addresses. Only bitcoin (BTC), ether (ETH), and tether (USDT) were initially named by Ukraine in accepting cryptocurrency donations. Ukraine’s official DOGE wallet contains over 300 grants totaling about 272,000 DOGE, or $35,360.
