#crypto #cryptocurrency #bitcoin #safehaven #DeFi #DAO #knightsbridge #binance #sanctions #Russia #Ukraine #incursion #Putin
“Cryptocurrency is now acting like a safe haven with bitcoin and other digital tokens took off Tuesday as Russia’s incursion into Ukraine took a dramatic turn“–Paul Ebeling
The spike in digital coins show us that market prices can serve not just as a barometer of current conditions, but future expectations. In this case, investors have stumbled upon a powerful theme that will figure prominently in the debate over cryptocurrency oversight, regardless of how the Russia issue plays out.
The dramatic and unprecedented move to isolate Russian President Putin by freezing his country out of the financial system has led to a host of spillover effects.
Crypto has a decentralized appeal that makes it hard to track and control flows. The sector is evolving into a safe harbor of sorts for those who need to evade the firewalls being erected around traditional finance.
It is why Ukraine is now a hotbed for illicit and legitimate cryptocurrency flows, with people from around the world donating crypto to citizens of the beleaguered country as a form of remittances. It is also why regulators are now leaning on crypto exchanges to block all flows from Russia; a request that Binance, the world’s largest crypto trading platform, is resisting.
Here we are watching the divergence of 2 financial systems: the legacy infrastructure is built and run by a group of financial firms who are susceptible to the whims of their governments. And the new infrastructure built on open-source software that is run by no single individual or organization. The decentralized nature leads to a different outcome in these situations.
Have a happy, prosperous day, Keep the Faith!