Will crypto stop the third world war? Our expert answer to this is No! Crypto will not stop the third ward war but will only lead to a world war of currencies.
Years before the present war between Ukraine and Russia, there have been debates by both experts as well as individuals as to whether crypto will stop the third world war or not.
As tensions between the two warring countries, Russia and Ukraine continue to rise, the global community is beginning to accept cryptocurrencies. The war has actually brought digital currencies to the spotlight. Several countries are beginning to accept digital currencies, this however comes with strict regulations.
Will Crypto Stop The Third World War?
Since Russia’s invasion of Ukraine, cryptocurrencies have been making headlines, with the ever-volatile bitcoin in high demand in Russia and beyond.
Are We About to Enter a Currency War? Following a decades-long period in which wars were fought with weapons, we are now in a period in which conflicts are waged with currency. Countries have realized that it is simpler, less expensive, and less brutal to destroy other countries’ economies rather than their militaries.
Wars cannot be fought without money, but the Russia-Ukraine conflict is the first major war in which digital currencies have played a significant role. Since Russian soldiers invaded Ukraine on February 24, the US and its allies have imposed a series of sanctions on Russia that are unprecedented.
These initiatives have sparked debate, especially in Congress, over whether Russian agents may use digital currencies to circumvent sanctions. The Russia-Ukraine conflict occurs at a moment when authorities are debating how to govern digital assets more broadly.
President Biden issued an executive order earlier this month asking for a whole-of-government policy on digital assets, with the goal of reducing national security concerns and illegal financial flows.
The European Parliament is considering whether energy-use rules for digital currencies should be imposed, which might prohibit some types. The prominence of cryptocurrency in this battle may have an impact on worldwide opinions of the technology, particularly among countries considering new restrictions.
This is why we’ve been witnessing currency wars among the world’s biggest economies, which are essentially a competition to keep their currencies as low and as cheap as possible. Little do the countries comprehend that, while such battles are less brutal, the consequences are just as destructive.
Indeed, currency conflicts may lead to conventional warfare when governments and their people turn inwards, caring only about themselves and their country, and seek to rule other countries after ruining their economies.
How has crypto impacted the Russia-Ukraine war?
Crypto has been the major financier of the Russia-Ukraine war. Regardless of the rest of the world’s financial sanctions on Russia, it has effectively circumvented them by using cryptocurrency. Sberbank, Russia’s largest bank, recently developed a digital currency named “Sbercoin.”
There is no such thing as good in times of war. Is cryptocurrency beneficial in the face of Russia’s invasion of Ukraine? Is it a problem? Neutral? It’s a tricky question to answer because crypto benefits both sides of the war. 75% of the donations made to Ukraine are in digital currencies.
Since both sides of the current war are using crypto to finance the world, at some point the global community will have no choice but to find an end to the war. The use of crypto to finance wars is a win-win for both sides. Banning digital currencies in the world is not feasible as it has been globally embraced by many, more so, crypto is a decentralized asset.
Cryptocurrency will not stop the third world war, that’s if it would happen soon, rather, its decentralized nature would only fuel the war as it will become a major financier for the war. While we stay put and watch as the Russia-Ukraine war unfolds, we strongly think crypto cannot stop the war but will only become an “instrument of war”.