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Eastern Europe sees crypto adoption rise driven by DeFi

Eastern Europe sees crypto adoption rise driven by DeFi

GrafaGrafa2024/11/03 00:00
By:Isaac Francis

A recent study by blockchain analytics firm Chainalysis indicates that cryptocurrency adoption is rapidly increasing in Eastern Europe, particularly in Ukraine and Russia, due to the rise of decentralised finance (DeFi) applications and growing institutional interest.

The ongoing Russo-Ukrainian war has prompted a shift toward alternative financial systems as political and economic instability drives individuals to seek refuge in non-traditional finance.

Chainalysis reports that DeFi transactions accounted for over a third of all crypto activity in the region last year, establishing Eastern Europe as one of the fastest-growing DeFi markets globally.

While centralised exchange transactions were previously on the rise in Russia and Ukraine, decentralised exchanges are now becoming the preferred platforms for users in the region.

Ivo Georgiev, CEO and co-founder of Ambire Wallet, explained this shift in an interview with BeInCrypto. 

He noted that the central appeal of decentralised institutions lies in their accessibility. 

“In Eastern Europe, such services are not only rare, but they’re very hard to access, requiring vast amounts of paperwork and often connections. DeFi offers a permissionless, easy and accessible alternative to this, where you can leverage your liquid assets and take loans against them without paperwork or anyone’s permission,” Georgiev stated.

Another significant factor driving crypto adoption in Eastern Europe is institutional involvement. 

Private entities such as banks are increasingly looking for inflation hedges amid a tumultuous political climate. 

Additionally, there is a growing interest in sanctionless cross-border payments, which the Russian government is increasingly supporting.

The conflict between Ukraine and Russia has intensified the trend of crypto adoption in the region. 

The war has destabilised financial institutions and currencies in Ukraine, promoting cryptocurrency as a viable inflation hedge and alternative DeFi option. 

Conversely, new sanctions against Russia have made cryptocurrencies more appealing to its citizens.

Chainalysis expressed optimism about future growth opportunities for crypto in Eastern Europe. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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