There are periods in time when the world changes and seismic transformations occur in an instant. The growing COVID pandemic and the consequences of Russia’s war in Ukraine have altered the planet. These trends can be felt on a daily basis in the realm of trade, where we’re witnessing a new broad acceptance of technology solutions to combat volatility; shortages, and lockdown impacts fueling inflation; currency volatility; and, of course, stress on global supply networks. As a result, both public and private companies across the world are flocking to block chain-based crypto and enterprise ecosystem solutions.
Under COVID, block chain trade is being digitized.
The start of COVID heightened the necessity of block chain trade digitization, and the war in Ukraine heightened it much more. We’ve learned that digitization alone will not prevent products from being held in customs and on ships for long periods of time owing to documentation processing issues. Goods could not be offloaded in many cases during the last few years since the paperwork workflow in those growing digitized processes still required “manual” reconciliation between parties. Even though the papers had been scanned digitally, they still needed to be “signed and stamped” before moving on to the next stage of the process.
Because the reconciliation phase across the trade ecosystem is automated, commerce using public ledgers and smart contracts can reduce transaction costs to their bare minimum. Given the current Ukraine conflict with Russia, this skill and adaptability are important. According to a survey published by the International Chambers of Commerce, full digitization could boost global trade by $9 trillion in five years, or 46 percent. Reduced operational expenses might help generate positive GDP growth and give credit to small and medium-sized businesses (SMEs), thereby closing the $1.5 trillion trade finance gap. This financial access will be important in the post-war reconstruction of Eastern Europe.
Inflationary pressures could be reduced by using block chain based crypto technologies. Using global cryptocurrencies during times of war, when traditional currencies are prone to fluctuation, could help to reduce price and money supply volatility. As a result of Russia’s invasion of Ukraine, markets are looking for other sources of oil, wheat, and sunflower supply. Consumers and small businesses can use cryptocurrencies as value shelters to protect themselves against weakening currencies and inflationary pressures.
Blockchain-enabled business results aren’t just for businesses. The impact of cryptocurrency acceleration in Russia and Ukraine is remarkable, and it reflects the regulatory regimes in the two nations prior to the invasion.
The government of Ukraine has raised large cash through NFTs and other cryptocurrency operations, thanks to a regulatory environment that has accelerated the acceptance and promotion of digital currency use. NFT’s meaning “Non-fungible tokens (NFTs) are block chain-based cryptographic assets having unique identification codes and information that separate them from one another. They cannot be traded or swapped for equivalent, unlike cryptocurrencies.”
There has been minimal use of bitcoin to transfer funds in and out of Russia due to the lack of regulatory support. In fact, the ruble’s reliance is becoming more severe as international sanctions against Russia restrict currency exchange.
The battle demonstrates five wartime benefits for governments that encourage cryptocurrencies through regulation, benefits that benefit both the government and the people.
Cryptocurrency has the potential to reduce inflation in us.
In times of war, when traditional currencies are prone to fluctuation, the usage of global cryptocurrencies could help to lessen price and money supply volatility. Markets are searching for alternate sources of oil, wheat, and sunflower production as a result of Russia’s invasion of Ukraine. Consumers and SMEs can protect themselves against depreciating currencies by using cryptocurrencies as value shelters to resist inflationary pressures.
The blockchain trade promotes transparency and makes funding more accessible to the general public.
Ukraine has raised large cash in recent months by accepting donations through crypto exchanges to help pay its Department of Defense. Ukraine is currently a digital asset and cryptocurrency leader in Eastern Europe (with strong uptake even before the invasion).
The Museum of War NFT assists supporters in making direct payments to the Ukrainian government without the use of an intermediary organization, hence increasing donations by guaranteeing that transactions are transparent and secure. The information is stored in a decentralized block chain network, which makes it difficult to alter. The system is open to everyone at the same time, which contributes to transaction transparency and agility.
Fertile Future of Digital Trade
Multinational corporations should continue to investigate how to integrate their ecosystems through secure data sharing across common workflows. For example, using blockchain to support digital identity, supply chain provenance, and digital asset processes would enable companies to not just profit on new market model possibilities, but also to encourage the agility required in unpredictable times. As cryptocurrencies and block chain’s appraisal and acceptability develop, what we’re seeing now in 2022 is just the beginning.