Since the annexation of Crimea by the Russian Federation in 2014, Ukraine has been in the international spotlight. This is due in large part to the ongoing conflict between Ukrainian forces and Russian-backed separatists in the country’s east.
However, Ukraine is also making headlines for its embrace of Bitcoin and other cryptocurrencies.
Bitcoin has been popular in Ukraine for several years now. In 2016, Ukrainian exchanges processed around $1 billion worth of Bitcoin trades. This figure increased to $1.
5 billion in 2017. And, according to a recent report, Ukrainian exchanges are on track to process $2 billion worth of Bitcoin trades this year.
There are a number of reasons behind Ukraine’s Bitcoin boom. One is the country’s unstable political and economic situation.
The Ukrainian hryvnia (UAH) is notoriously volatile and has lost a significant amount of value against the US dollar in recent years. This has made Bitcoin an attractive investment for Ukrainians looking to protect their savings from inflation.
Another reason for Bitcoin’s popularity in Ukraine is the country’s large IT sector. According to a report by TechCrunch, Ukraine is home to over 4,000 IT startUPS and employs over 100,000 people in the industry.
This has created a tech-savvy population that is well-positioned to take advantage of Bitcoin and other cryptocurrencies.
Finally, there is growing interest from the Ukrainian government in Bitcoin and blockchain technology. In February of this year, the National Bank of Ukraine announced that it was considering launching its own cryptocurrency.
And earlier this month, the Ukrainian parliament held a meeting with representatives from major cryptocurrency exchanges to discuss regulation of the industry.
All signs point to continued growth for Bitcoin in Ukraine. The combination of an unstable economy, a tech-savvy population, and government interest makes it one of the most promising markets for cryptocurrency adoption.