Russian President Vladimir Putin ordered a full scale invasion of Ukraine on February 24th due to fears of the neighboring country's increasing relations with the West, namely its moves towards the European Union as well as NATO (the West’s defensive military alliance). Putin feels these developments threaten Russia’s “historic future as a nation,” as countries such as the US will establish military bases a few short miles away. As the war approaches its third week, the city of Kherson has become the first major Ukrainian city to fall under Russian control.

As reports of a strong Ukrainian resistance to the invasion continue to flood in however, fighting sadly continues. The West has responded with unprecedented economic sanctions on Russia, sending the Russian ruble crashing 30% against the dollar. The sanctions basically prohibit any business with the Russian central bank while also freezing their assets held abroad. About 50% of Russia’s reserves are held in dollars and euros. In response, the Russian central bank has more than doubled interest rates from 9.5% to 20%, in order to entice savers into leaving their money in Russian banks to prevent a further tumble of the currency. The Moscow Exchange is shut down and remains closed for trading.

Different sides of the same coin

Bitcoin trading volume has surged in the local currencies of Russia and Ukraine ever since the invasion began. ATM lines continue to grow in Russia with citizens attempting to remove their cash from a financial system they fear will soon crash. Alternatively, the Ukrainian government has been asking for bitcoin donations for their defense effort, sending the world their public BTC address on twitter. Ukrainian citizens needing to preserve and transport their life savings while fleeing in search of safety have turned to bitcoin as well. One story cited a Ukrainian buying a car in bitcoin in order to escape the war torn country, as he couldn't withdraw money from his bank due to "martial law and bank runs."

Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT.

BTC - 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P

ETH and USDT (ERC-20) - 0x165CD37b4C644C2921454429E7F9358d18A45e14

— Ukraine / Україна (@Ukraine) February 26, 2022

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Bitcoin pumped amid speculation it will be needed as a form of payment and wealth protection in the region. While Russians and Ukrainians situations may differ, their need for a portable, decentralized and censorship-resistant money is the same. Bitcoin has since dipped however, along with global markets, due to fears of an energy crisis resulting from a ban on Russian oil.

The Russian-Ukrainian conflict is only one of the latest examples of the demand for censorship-free money. Earlier this month, Canadians taking part in and donating to the Trucker Convoy had their bank accounts frozen by authorities in order to suppress their protest against government mandates. Canadians quickly turned to bitcoin, raising over $1 million in BTC, the majority of which was distributed directly to the truckers as traditional forms of payment were shut down. The government was ultimately forced to take drastic removal measures against the truckers, leaving the government with a lot of litigation and lasting negative PR.

Bitcoin doesn't discriminate

Forbes wrote a piece this week proclaiming “Bitcoin is demonstrating its value to the world.” Whether its truckers protesting mandates in Canada, Russian citizens affected by sanctions against their government or Ukrainians dealing with a violent invasion of their country, the world is waking up to the fragility of centralized financial systems. The need for a decentralized, censorship-resistant, incorruptible monetary network that is accessible to everyone is becoming abundantly clear.