We all know the FUD around cryptocurrency. People like Elizabeth Warren and Warren Buffett blast it, albeit for different reasons. With the former, she stands on her soapbox ignorantly proclaiming that it is used by criminals while also accusing Russia of avoiding sanctions.
Never let the facts get in the way of a good rant Senator.
The reality is that neither of these are true. In fact, during this conflict, it seems Russia is placing more havoc on the traditional banking system. They are pulling out all the punches to disable the Ukrainian financial system.
Here is where something that is borderless along with being outside the control of any government or central bank is vital. The Ukrainians are benefitting at the most basic level.
The Opposite Of The Rhetoric
With cryptocurrency, it looks like the opposite of the rhetoric is taking place.
To start, the lack of liquidity is making it near impossible for Russia to swap fiat to crypto for movement around the world. While cryptocurrency made strides, it is still far to small to cater to national interests. The potential of swapping billions of dollars is not likely. Finding liquidity for that volume does not exist at this moment. This is especially true if trying to do it without drawing too much attention.
The other, and far more important aspect, is the Ukrainian people have access to money. Whatever the politics are, in the end it is the innocent populations that end up suffering. Here we have millions of refugees who lost everything.
Cryptocurrency is their life boat. We can only imagine what is taking place with the infrastructure of the Ukrainian banking system. It is unlikely that they are not targeting the banks and other financial institutions. Toss in DDoS attacks and we could see a system locked up.
Fortunately, cryptocurrency keeps churning along. The infrastructure exists all over the world. Thus, attacking it in a traditional sense is not possible. There is nothing inside Ukraine, or any other country, that can be taken down to stop it (collectively).
The ability to send hundreds of millions of dollars (even billions) is in place.
When the Russian invasion began in February, Twitter accounts belonging to the Ukrainian government posted pleas for crypto asset donations. Now, as more than $100 million in crypto donations have already been raised to support the Ukrainian resistance, those of us who have championed crypto as a way of giving ordinary people rather than corporations and governments control over their own money have been vindicated. While the banking financial system has been under sustained attack by Russia, using both military and cyberattacks, this life-saving money has gone directly to those in need via crypto.
Getting Money To Where It Is Needed
We discussed how blockchain, coupled with cryptocurrency, is mirroring the Eurodollar system. That, too, is a monetary system that is outside the control of any government or central bank. This was established by the international bankers over the course of a number of decades. Basically, it allows them to create money in ways that were not imagined before.
What is so effective about this system it is designed to get money where it is needed, when it is needed, under any and all circumstances.
For this reason, there is no doubt that the Russian banks are getting the funding required. Again, regardless of the circumstances, in this instance sanctions, it is designed to operate.
The challenge is that this is for bankers. Cryptocurrency takes this to another level.
We are seeing how cryptocurrency can get to where it is needed, when needed, no matter what the circumstances. Are we starting to see the trend?
Even in the middle of a way, where the banking system is stopping cross border payments and FOREX swaps, individuals can operate with little issue. For Ukraine, this means simply a smart phone and an Internet connection. Thanks to another innovation, satellite Internet from Starlink, destroying the terrestrial communication system is not stopping things.
Here is something to consider: if cryptocurrency cannot be halted by Russian tanks and bombs, what will it take to stop it?
The reality is, like the Eurodollar system, it is designed to just keep churning along. This time, instead of feeding money to the banks, we can get it directly to individuals.
A New Model For Humanitarian Efforts
For decades we saw commercials for different humanitarian causes. This is especially true in the developed countries. There is always some organization putting together a project to help those in need.
Unfortunately, we have the epitome of an intermediary. There is always some entity putting this together. While their efforts might be noble, a portion ends up going to the operations. After all, those commercials are not free.
Then we can always add in the threat of theft. How many times have we see humanitarian efforts usurped by warlords or whomever were able to get a hold of the money or goods destined for suffering populations?
As we are seeing in Ukraine, money can be sent directly to individuals without the use of a third party. It does not matter if all of the banking infrastructure is obliterated, blockchain networks keep going.
This Is The Message We Need To Spread
For all the talk of scams, criminals, and other FUD associated with cryptocurrency, we are seeing the true value emerging. The fact we have a system that is in place, collectively, that keeps a monetary ledger outside the bankers is invaluable. Ultimately, the banking system can come under attack. With blockchains, this is not so easy to do.
Here we see how a powerful country like Russia is impotent to stop what is taking place. It can go after the banking system but is powerless against cryptocurrency.
And for the moment, that is a lifeline to millions of Ukrainians.
If you found this article informative, please give an upvote and rehive.
gif by @doze
logo by @st8z