Ukraine, crypto, and the future of money
Future. The Russian invasion of Ukraine has thrust cryptocurrencies into the spotlight as the quickest and most efficient way to funnel funds from around the world. Before this, many pro-crypto arguments were abstract and futuristic at best, but now — as the world sees the utility of crypto in real-time — we could be at an inflection point.
The promise of crypto
In the midst of war, crypto is proving its potential as the future of currency.
- The Ukrainian government has raised millions in crypto donations to fund its fight against Russia.
- Alex Bornyakov, Ukraine’s deputy minister of digital transformation, says that since crypto circumvents typical bank approvals, it’s a more efficient way to accept funds.
- Crypto donations to Ukraine have already been used to buy bulletproof vests, military rations, and more.
Bretton Woods III
Since the dawn of the 19th century, the world has evolved through a number of global monetary systems. These shifts are catalyzed by a significant financial event that “shocks” the prevailing order. For example, the collapse of the Bretton Woods system, which established rules for international financial relations until the 1970s, collapsed after President Nixon devalued the US dollar relative to gold.
Some experts believe that we could be living through one of these shocks. “Bretton Woods II was built on inside money, and its foundations crumbled a week ago when the G7 seized Russia’s FX reserves,” said Zoltan Pozsar, global head of short-term interest strategy at Credit Suisse. “We are witnessing the birth of Bretton Woods III – a new world (monetary) order.”