Ukraine is setting their sights on stimulating their economy by legalising and regulating Bitcoin. State officials are placing massive stock in the cryptocurrency revolution, planning to secure their spot as a global hub for crypto trading and technology. They believe that cryptocurrency is the future of the global economy, and they want to be firmly established as one of the world’s top crypto-friendly nations.
Ukraine already sees a staggering amount of cryptocurrency trade, as roughly $8 billion worth of trades occur within the country per year. The Ukrainian population is overwhelmingly crypto-positive with the nation placing fourth in number of cryptocurrency users globally.
Technology is a booming sector in Ukraine, accounting for almost 10% of their GDP. This is forecast to grow rapidly in the near future as Ukraine is concentrating their efforts on facilitating and participating in cryptocurrency trade.
Ukraine’s interest in crypto markets follows a trend of poorer countries seeking to enrich their economies. Big players in Poland’s technology industry are receiving tax breaks and grants to speed up their progress, while South American and Southeast Asian countries are set to follow in Ukraine’s footsteps by legitimising cryptocurrency within their own borders.
While Ukraine and other financial underdogs vie for favourable positions in the emerging global crypto-economy, China has given up their status as the world leader in crypto mining. Until recently, China held a 75% market share in Bitcoin due to their unparalleled mining practices. However, new laws have severely restricted cryptocurrency activity within Chinese borders, making it near impossible for Bitcoin miners to carry on their operations, so they’ll have to play at onlinecasinogames.co.nz to make big money instead.
The U.S. has now overtaken China in mining, their market share climbing from 14 to 35 percent in under 8 months. China’s authoritarian approach to cryptocurrency comes from the loss of control it represents for the state. Instead of embracing the change like Ukraine and others, China is cracking down on illegal cryptocurrency activity. It is no secret that Bitcoin’s anonymity has made it easier for illicit transactions to be made, and China is not having it.
China’s rapid exit from the crypto mining industry has cleared the way for other aspiring nations to get in on the action. Private companies and governments alike are rushing to capitalise on their absence and claim a portion of their abandoned market share.
Ukraine has been the first among many hopeful countries to make a marked commitment to cryptocurrency, leading experts to estimate that Ukraine’s technology sector could be worth an astronomical $18 billion dollars by the year 2025, more than triple its $5 billion valuation in 2020. Growth in the sector has apparently jumped from 20-30% per annum to 40-50% and shows no signs of slowing.
The pandemic certainly presented an opportunity for Ukraine’s technology sector, with physically distanced learning and remote work necessitating a huge growth in communication technology. Now, the state is giving over the reins to Ukrainian tech giants in the hopes that they can ride the momentum to the top of global crypto exchange.
