VegaX Flash News Report: Implications of War and the Crypto Economy — What’s Happening?

VegaX Holdings Flash News Report: February 2022 — Covering the geopolitical tensions between Ukraine and Russia, what War means for the Crypto Industry, and how this all may impact the future.

What’s happening:

A little history lesson:

The Players and Pawns:

The Russian economy is tied to the world

  • Exports: Russia is one of the largest producers and exporters of oil and natural gas, a position that has been notoriously used in the past to benefit from supply and demand. It is also among the largest exporters of fertilizer, iron, nickel, cooking oil, coal, and many other highly sought-after commodities.
  • Forex reserves: To reduce dependence on the US dollar, Russia’s central bank has acquired more than $600 bn worth of foreign reserves (40% of its GDP), held in mostly Euros or gold.

Leveraging US dollar dependent financial system against Russia

  • SWIFT is a global financial messaging system used by banks worldwide to communicate with one another for facilitating transactions. SWIFT manages an incredibly complex and interconnected web of banks around the world to direct the flow of money. More than 50% of all the transactions on the SWIFT network involve the US dollar, making SWIFT the most significant contributor to USD’s global status.
  • Sanctions: It is a giant naughty list of individuals and governments that have been banned from participating in the SWIFT network, which is almost equivalent to their complete financial isolation.
  • The use of sanctions against a whole of Russia would be an operational nightmare, but could effectively cut Russian export networks, its primary source of revenue.

Bitcoin donations are flooding in to support Ukraine

  • The Ukrainian military has received close to $4 mil in BTC donations to help their fight against the Russian troops. NGOs and volunteer groups have played a key role in raising these BTC donations.

Implications on the Crypto Industry

Sanctions: The double-edged sword

  • The ban could push Russia to adopt the Chinese alternative to SWIFT (CIPS).
  • Being faster, more secure, and cheaper than SWIFT, blockchain-based payment networks have the potential to gain wider adoption in the future.
  • The sanctions could potentially initiate the de-dollarization of the world economy.

The case for CBDCs

Inflation, Equity and Bitcoin

Narrative vs technical outlook

A rock and a hard place

Conclusion

🚀Better Indexes, Better Returns — VegaX

🎯Follow, Message, Tweet, Clap, & Join Us Here:

VegaX Site | VegaX Twitter | VegaX FB | VegaX LinkedIn | VegaX IG

--

--

--

VegaX: The Future of Digital Asset Management — Innovation of Proprietary Indices and Next-Gen Digital Asset Management Products. https://vegaxholdings.com

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Official THEOS IDO Results

Grise its token/ NFT utility and AI Platform Launch

Open secret for Crypto traders

6 Major Factors Why You Should Build A Cryptocurrency Exchange.

Renting out your tokens on Giga-Watt.com

StrongNode Set To Be Launched On BullPerks

BTC Touches $10k, Coronavirus Whistleblower Remembered, Ukraine and Trump Disagree — Roundup #27

Bitcoin OTC: overview of a nascent (and sometimes scary) market

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
VegaX Holdings

VegaX Holdings

VegaX: The Future of Digital Asset Management — Innovation of Proprietary Indices and Next-Gen Digital Asset Management Products. https://vegaxholdings.com

More from Medium

Your Network Matters

Bitcoin and Crypto Currencies. Explained

Pecunia.Finance Funded By SifDAO To Build A Connector Between Sifchain DEX & Hummingbot!

Stablecoins: Stable value cryptocurrencies