Ukraine’s Central Bank Suspends Digital Money Transfers in Connection With Martial Law Declaration
Ukraine’s central bank is imposing a sweeping set of new measures to crack down on the transfer of cash, as Kiev declares martial law in response to Russian military attacks across the country.
On Thursday, Ukrainian President Volodymyr Zelensky declared martial law, following Russian President Vladimir Putin’s announcement that Russian forces would be conducting a “special operation in Ukraine.” In response, the National Bank of Ukraine temporarily halted the issuance, replenishment, and distribution of electronic money, likely with the intent of freezing fiat currencies deposited in digital platforms such as PayPal and Venmo.
In addition to that, the central bank is also planning to suspend the country’s foreign exchange market, curb cash withdrawals, as well as block the issuance of foreign money from retail bank accounts. With the sweeping measures aimed at limiting the movement of cash in the country, crypto markets have rebounded from Thursday’s sharp losses, with bitcoin up by more than 10% as of Friday morning. Other major cryptocurrencies also followed suit, with ethereum also noting modest gains since yesterday’s slump.
The crypto selloff was in unison with the broader slump in global markets, as investors braced for Russia’s full-scale invasion of Ukraine. Bitcoin’s price has been closely correlated with other riskier equities, as times of economic uncertainty prompt institutional investors to hold safe haven assets or commodities.
Information for this briefing was found via the National Bank of Ukraine. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
