Ukraine has an advantage over crypto adoption over Russia, research shows, as the latter launches attacks on Ukraine.

Chainalysis, a market research firm, ranked Ukraine fourth globally in its 2021 Global Crypto Adoption Index (GCAI), which tracks the amount and value of cryptocurrencies exchanged in a country.

Although Russian President Vladimir Putin has approved a full-scale war against Ukraine, Bitcoin is playing a key role in both sides of the conflict, and Ukraine appears to be better prepared to adopt new financial technologies.

A quick background: Ukraine declared its independence from the USSR in 1991, after the breakup of the Union.

Ukraine has made progress in adopting crypto

According to Marina Kovalenko, CEO of Cillar, a Bitcoin tax platform in Brisbane, Ukraine’s move to legalize cryptocurrencies under the legal framework was “progressive” and puts the country at risk for future foreign investment.

According to Google Trends, interest in Bitcoin in Eastern European countries has increased somewhat in the last few days after a sharp rise in early Thursday.

Google Trends Chart shows 100% interest in Bitcoin acceptance till February 24.

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BTC total market cap at $663.345 billion in the daily chart | Source: TradingView.com

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Ukraine has a huge pool of software developers ready to enter the space of blockchain technology.

Last year, Dutch IT company DAX ranked Ukraine as the world’s most wanted country for information technology outsourcing and the world’s No. 1 programmer for hiring programmers.

A 2021 report in The New York Times found that Ukraine handles more cryptocurrency transactions per day than its domestic currency, the hryvnia.

$ 8 billion crypto enters Ukraine annually

According to the Times, more than $ 150 million worth of cryptocurrency transactions are made daily in Ukraine, and about $ 8 billion worth of cryptocurrencies enter and leave the country each year.

Ukraine’s parliament last week enacted legislation to legalize cryptocurrencies, laying the groundwork for a regulatory framework to effectively monitor the flow of digital assets such as bitcoin.

Ukrainian policymakers are hopeful that the new law and its adoption of crypto will attract additional international investment in the country’s developing crypto economy, although it appears to be slowing down financial flows with Russia – and now a full-scale war.

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For its part, Russia is debating whether to introduce a new bill to regulate cryptocurrency as a currency or to change existing laws to limit criminal activity and bring crypto-related taxes under government control.

Meanwhile, some Ukrainians may lean towards Bitcoin as the country’s currency depreciated on Thursday and the central bank restricted cash withdrawals to UAH100,000 ($ 3,390) per day.

Bitcoin fell to $ 35,205 at 09:30 UTC on Thursday after hitting the first Russian missile in the Ukrainian capital Kiev.

The price is still 8% lower in one day and 19% lower in one week, all profits made in the previous month have been removed.

Featured image from Coiner Blog, chart from TradingView.com

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