Ukraine’s Central Bank restricted digital money activities, which resulted in increased usage of crypto. Data from a crypto trading platform Kuna show that Ukrainians are mainly paying a premium for Tether's USDT.
The CB told e-money issuers to halt the issuance of digital currencies and the replenishment of e-wallets. This law refers to fiat that owners keep in their PayPal, Venmo, or other digital payments accounts. The aim was to suspend the interbank market, and restrict cash withdrawals to fix the rate of hryvnia as people lined up at bank offices and ATMs.
The local economic situation is uncertain in Ukraine, and people are hurriedly selling their cash.
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The founder of Kuna, Michael Chobanian told CoinDesk that people don't trust the government, banks and the national fiat. He said that most people don't have another choice than crypto. USDT is the leading stablecoin with a market cap of around $79.5 bln. Unlike other cryptos, which are highly volatile, stablecoins serve as reserve assets due to their ability to reduce volatility-related risks.