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After the anniversary of the invasion of Russia from the war in Ukraine, cryptoslate thoroughly examines the state of Ukraine's blockchain industry.
In a proprietary interview with cryptoslate, alex bornyakov discussed the many challenges ahead for Ukraine's blockchain industry following the invasion of Russia and how cryptography is being used to support the country's defence efforts.
About one-third, or something in the order of $62 million, is an Aid for Ukraine group, A blockchain syndicate composed of Alex Bornyakov, the present Deputy Minister for Ukraine's Digital Transformation, Michael Chobanian, founding member of the Ukrainian crypto exchange, Kuna.io, Sergey Vasylchuck, please, founding member of the Everstake staking platform.
In a proprietary interview with CryptoSlate, Alex Bornyakov talked about the many challenges ahead for the Ukrainian blockchain industry following the invasion of Russia and how cryptography is being used to support the country's defense efforts.
"when the war started, We had dozens of technology companies making donations, not just money, but teams of developers came up with plenty of ideas on how they might support Ukraine." The role of bornyakov as Deputy Minister of Digital Transformation involves working between government and the business world, emphasizing the information technology and blockchain sectors. "I am in contact with many entrepreneurs and funds, businesses, founders, owners and policy makers.
Bornyakov's role as Deputy Minister of Digital Transformation implies working between government and business, with his emphasis on the computer and blockchain sectors.
“I am also responsible for a project called Electronic Residence", a program that allows non-citizens in Ukraine to open a bank account and also run companies related to cryptography.
Bornyakov added that he also advised the Government of Ukraine on the establishment of a CBDC, which he believes will be crucial in supporting efforts by ukraine to go fully digital.“the goal of a cbdc is to increase the transparency of money flows and have programmable money, so that we can rid ourselves of bureaucracy when government money is scattered,' said Bornyakov. "We have new legislation signed by President Zelenskyy in April 2022 that makes changes to our tax code to make a CBDC work. If you are a company or would like to become a virtual service provider, you are now unable to do so because tax rules and laws need to be amended in Ukraine. We are now working with the National Security Commission and the Ukrainian National Bank to finalize that legislation. So if you're a company or you want to become a virtual provider of services, you are now unable to do so because tax rules and laws need to be amended in Ukraine.
However, according to Michael Chobanian, founder of Ukrainian crypto exchange Kuna.io, the newly proposed legislation does not go far enough to support fiat to crypto onramps, which may, in the long run, hurt the Ukrainian crypto exchange he founded in 2014.
Also enterprises can use crypto and other ways for their business. As far as CBDCs are concerned, a pilot project with several Ukrainian banks was recently completed, which have been successful', in Michael Chobanian's opinion, founder of Ukrainian kuna.io crypto-exchange, the new bill does not go far enough to sustain fiat to crypto onramps, which may, long-lasting, impede the crypto exchange he founded in Ukraine in 2014.
In March 2022, a partnership between the new defunct crypto exchange FTX and Everstake supported converting crypto donations made via Aid for Ukraine into fiat deposits at the National Bank of Ukraine, with FTX handling the SWIFT portion of the transaction.
The main trade of Ukraine Kuna is in jeopardy, in Michael Chobanian's opinion, founder of Kuna.io., a Ukrainian crypto exchange, the new bill does not go far enough to sustain fiat to crypto onramps, which may, long-lasting, impede the crypto exchange he founded in Ukraine in 2014.
“It then levelled off at about $1.5 million a day, Chobanian said, adding that the major pairs are USDT/UAH and BTC/UAH.
In February 2022, a partnership between the new deceased crypto ftx exchange and everstake supported the conversion of crypto donations made through assistance to Ukraine into trust deposits at the National Bank of Ukraine, with ftx processing the swift part of the trade. However, with the new changes proposed at the political level, Chobanian is concerned that exchanges such as kuna could suffer because the bill does not allow local exchanges to function." the government is still highly centralised and ineffectual,' said Chobanian cryptoslate, adding that he believes that Ukraine's current legislation will make fiat-to-crypto trade more difficult.
Many Ukrainians now use small fiat treasury cryptography booths, tiny OTC exchanges that charge profit margins of up to 1.5%, three times the industry standard of 0.5%. However, chobanian postulates that as stock exchanges become more regulated around the world, in the long run, some will start to merge with banks. "I foresee a merger between traditional banks and stock markets," he said.
"either exchanges will purchase from banks, or banks will purchase existing software and exchanges such as BINANCE and kraken to merge into a single product.
With so many changes forthcoming and still no end to the war in sight, it appears that tension is starting to emerge from within Ukraine’s blockchain industry, which is adapting to not only the war effort from within but also to the rapidly changing external environment in which crypto is increasingly seen by regulators and military and intelligence agencies as a non-state adversary, or at least, the potential threat of one.
He added that he intended to introduce kuna on the European market, but refused to give an accurate entry date.
Dorian Batycka is a journalist interested in art and technology. With over $60 million donated to ukraine in crypto through aid for ukraine since the onset of the war and changes likely to come this year regulating the issuance of a cbdc, crypto, and blockchain will probably still play a certain role in the future of Ukraine, even though that's his role, there's still a long way to go. Dorian batycka contributor to cryptoslatedorian batycka is an interested journalist of art and technology.
He is available on Twitter and Instagram @temp_projects, where he often recalls financial and artistic news, scandals and events.
