PrivacySwap Thoughts: Can cryptocurrency save you from inflation?
As the commotion between Russia and Ukraine escalates, Russia’s currency tumbled. Can cryptocurrency save the world from this type of situation?
As the tension rises between the two warring countries, other nations sanction Russia’s financial sector — the United Kingdom, the United States, and the European Union. The sanctions include a block to the world’s financial system and a restriction on its central bank in response to its invasion of Ukraine.
This action was announced as part of the financial sanctions meant to hold Russia accountable and ensure that this war is a strategic failure for Russian President Vladimir Putin.
The central bank restrictions target the Kremlin’s more than $600 billion in reserves, limiting Russia’s ability to support the ruble in the face of tightening Western sanctions. They will also significantly restrict Russia’s capacity to import and export commodities.
Officials in the United States said Saturday’s actions were designed to throw the currency into “free fall” and foster soaring inflation in the Russian economy. They underlined that previously announced measures had already impacted Russia, causing its currency to fall to its lowest level against the dollar in history and its stock market to experience its worst week on record.
The effect of the sanctions on Russians
After the announcement, Russia’s ruble fell 30% against the US dollar. It now stands at 1 US cent per ruble.
Following that, In Moscow, people queued up at ATMs to withdraw their cash. As the currency’s value continuously drops, the central bank raises the key interest rate.
As the ruble value falls, inflation could surge. This has understandably upset the Russians, whose budget will be stretched due to price hikes.
How can crypto possibly save you from this financial crisis?
Cryptocurrency is known for being decentralized. However, it still feels the impact of an international crisis. When the commotion started, crypto’s price tumbled along with the stock markets.
This doesn’t curtail the viability of cryptocurrency. The borderless usage of this alternative currency allows everyone to convert their digital assets holding to any fiat currency easily. If you own a cryptocurrency portfolio, inflation in the traditional market won’t take too much effect on your crypto holdings.
In addition, digital assets are usable worldwide. Thus, you can trade anytime and anywhere. With the flexibility of cryptocurrency, everyone will have a secure wallet and fund functional and accepted in most parts of the globe.
PrivacySwap aims to offer an ecosystem that gives this kind of freedom to users. In addition, we also aim to create convenient and seamless crypto to fiat transactions. With the upcoming release of our DEX and PrivacyCard, we aim to offer a platform that will leverage your digital holdings and ensure that you have the freedom to use your crypto assets and cash them out anywhere in the world.
With our DEX, anyone can exchange their tokens and coins for any tokens we support. In Addition, everyone can also stake on our high APR farms to earn more tokens.
We created PrivacyCard to ensure that everyone’s crypto asset is usable as fiat in all supported ATMs worldwide. With these, along with all our amazing features, we aim to make the DeFi space convenient and beneficial to everyone!