Ukraine bans Bitcoin purchases with local currency amid martial lawUkrainians are now allowed to buy Bitcoin only with foreign currency with a monthly cap of $3,300.
The National Bank of Ukraine (NBU) continues taking measures to prevent capital outflows amid martial law by enforcing major restrictions on cryptocurrency purchases.
The Ukrainian central bank officially announced Thursday a set of restrictions on cross-border operations, prohibiting individuals from buying cryptocurrencies like Bitcoin (BTC) with the national fiat currency, the hryvnia (UAH).
I do not check the value of hryvnia but I think the war in Ukraine would have caused persistence rise in price of goods and services in Ukraine, which means inflation. NBU restrict Hryvnia to be used to purchase bitcoin a d altcoins but allowed foreign currencies to be used. I still do not understand the reason behind this because also foreign currencies have much to contribute to inflation if its reserves are depleting.
What could be the benefit of the NBC move to allow Ukrainians to only use foreign currencies to purchase cryptocurrencies and not allowing their own local currency to be used? But I think with this, only few people will have access to foreign currencies compared to those that will have access to local currency, which means a way to reduce Ukrainians that are buying cryptocurrencies.
This is understandable, where the Ukrainian currency must circulate to restore the country's economy, especially for crypto purchases which seem to have evaporated functionally for the country. With the current messy facilities and infrastructure and isolated economic activity, of course, Ukraine must be able to get out of this situation. and starting from the internal economic circulation in the country