The Ukrainian central bank has suspended electronic cash transfers, bolstering the case for cryptocurrency

<p>One of the most recent measures implemented in connection with a nationwide declaration of martial law is a crackdown on digital money transfers by Ukraine's central bank. </p> <p>The National Bank of Ukraine has ordered electronic money (e-money) issuers to halt e-money issuance and e-money replenishment of electronic wallets. The written order also stated that e-money distribution was temporarily prohibited. </p> <p>The term "electronic money" most likely refers to fiat currencies held in digital accounts via platforms such as Venmo or PayPal. </p> <p>This is one of several new rules imposed by the country's central bank as Russian forces lay siege to Ukraine. </p> <p>On Thursday, the National Bank of Ukraine issued a statement containing a slew of resolutions, including an order suspending the foreign exchange market, limiting cash withdrawals, and prohibiting the issuance of foreign currency from retail bank accounts. </p> <p>As Ukraine tightens restrictions on cash-transfer routes and Moscow unleashes airstrikes and ground troops, some Ukrainians are turning to cryptocurrencies. </p> <p>According to Kuna, a popular Ukrainian cryptocurrency exchange, domestic buyers are paying a premium for Tether's USDT stablecoin, which is pegged to the value of the US dollar. </p> <p>"We don't have faith in the government." We don't have faith in the banking system. "We don't trust the local currency," Michael Chobanian, the founder of Kuna, told Coindesk in an interview. "The vast majority of people have no other option but to invest in cryptocurrency." </p> <p>Tether, with a market cap of nearly $80 billion, is the most popular stablecoin by market cap, and unlike cryptocurrencies like bitcoin and ethereum, which have experienced significant volatility in recent weeks due to rising geopolitical tensions, tether, like other stablecoins, is generally fairly stable in value. </p> <p>However, due to increased demand, the current exchange rate for 1 USDT is approximately 32 Ukrainian hryvnia (the national currency