Ukraine would be ready to take the path of economic growth to developing countries. For this, the country wants to build its wealth by relying on cryptocurrencies, in particular bitcoin (BTC). For the Ukrainian authorities, the intergovernmental programs and the actions of the International Monetary Fund (IMF) do not address the underlying causes of the economic problems. But with the BTC, developing countries have the opportunity to get out of their precariousness.
Problems with fiat money
According to financial industry experts, Ukraine is a good example of the effect electronic currencies can have on a country’s economy. According to them, the economic system that currently prevails in the country and which is based on fiduciary money has caused many problems.
For example, because of fiat money, the average inflation rate over the past decade has risen to 11.2% per year, which is very worrying. Indeed, such a high rate has a negative impact on savings and long-term investments in promising projects.
Other elements must also be taken into account to justify the precariousness in which Ukraine finds itself. According to the 2021 Economic Freedom Index, the country’s economy is not very free and the investment sectors are not sufficiently supported. And, to make matters worse, financial freedom remains a utopia for several Ukrainians forced to lock themselves into predefined codes.
Benefits of BTC for Ukraine
Traditional approaches in the economic sector are proving ineffective in Ukraine. Faced with this state of affairs, the best solution would be to turn to cryptocurrencies, according to experts. On this point, Ukraine could become a real textbook case. Indeed, the adoption of BTC in the country would provide multiple unique opportunities for ordinary citizens and innovative startups.
With bitcoin (BTC), Ukraine can build a deflationary economic environment which would benefit investors. For good reason, each person can not only protect their savings from the inflationary trend, but in addition they can take full advantage of the increase in funds invested in the years to come.
In addition, BTC is a decentralized cryptocurrency that remains accessible to everyone around the world. At the same time, even if many States do not want to recognize it, BTC is essential in the habits of their citizens. In this context, even in the absence of defined rules, Ukrainians can effectively integrate into the global financial and innovative system. So, with bitcoin (BTC), each Ukrainian will have the opportunity to control his savings.
The use of cryptocurrencies, especially bitcoin (BTC), has many advantages. It is even possible that electronic currencies will come to the aid of the already fragile economies of developing countries. Ukraine intends to set an example by integrating BTC into the habits of its citizens. For now, it is not yet clearly defined, but the authorities will probably soon take a closer look at the digital asset sector.
Source: Bitcoin Magazine
Receive a digest of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!
Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 on a few cryptos only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.
