Confidence in Ukrainian fiat currency collapses, people frantically buy cryptocurrency USDT soaring and decoupling

The Russian invasion, one way for the Ukrainian people to protect their assets is to convert the fiat currency in their hands into other assets. Therefore, the cryptocurrency has become one of the channels to quickly transfer assets. The local exchange even saw a strange rise in the dollar stablecoin of more than 5%. The price of Bitcoin also produces three different currency values.

When the country is threatened by turmoil, the common safe haven assets are gold and US dollars, but in the chaos, it is not easy to buy these two things. In contrast, cryptocurrency operations are easier.

According to data from Ukraine’s domestic cryptocurrency exchange, after Russia’s official invasion of Ukraine, the price of the U.S. dollar stablecoin Tether (USDT) fluctuated violently. The exchange rate of Tether to Ukrainian fiat currency (UAH) came to 1:32.3, which should have been Tether, which is pegged at 1:1 with the US dollar, also rose to US$1.1 at one point.

This is because USDT is not in unlimited supply, especially in smaller exchanges, the amount of USDT that can be exchanged is limited, so there is a strange phenomenon of currency price decoupling.

Compared with Tether, another U.S. dollar stable currency USDC has a worse circulation rate in Ukraine and a smaller supply, so it is also 1:1 anchored to the U.S. dollar, but the currency value of USDC in the Ukrainian exchange is one dollar lower than USDT. This creates a strange phenomenon. On the Ukrainian exchange Kuna, the price of a Bitcoin is 37715 USDT, or 39248 USDC, which is also equal to 40819 US dollars.

At this moment, on exchanges in Taiwan and the United States, the price of Bitcoin is 38,535 USDT.

This is an extremely bad phenomenon for exchanges. Millions of dollars are waiting to buy cryptocurrencies. The question is who wants to exchange their cryptocurrency for Ukrainian fiat?

LINE Pay Japan will open the encrypted asset LINK as a payment channel

LINE Pay, a digital wallet and fintech service under LINE, announced today that during the trial operation period from March 16 to December 26, 2022, LINE users can hold LINE’s encrypted asset “LINK” in some online stores to spend in Japan.

During the trial operation, users can choose to pay with LINK when checking out in some online stores of LINE Pay, such as LINE POINTS, with no handling fee. By connecting LINE Pay and LINK, in addition to expanding payment options and improving convenience, it can also increase the daily use of LINK.

LINK is based on LINE Blockchain, a blockchain network owned by LINE, and has continued to expand its application range since its launch. Taking Japan as an example, LINE BITMAX, an encrypted asset exchange operated by LVC, allows users to pay transaction fees with LINK when trading encrypted assets, and can also deduct money from their LINE Pay account or bank account.

LINE Tech Plus, a subsidiary of LINE’s global crypto asset and blockchain business, has recently continued to promote the popularization of LINK and accelerate the realization of the goal of a cashless society, including LINE Pay marketing promotion and original research.

LINE Pay also plans to open Bitcoin, Ethereum and other encrypted assets as payment options in the future, and actively establish a blockchain business partnership. In order to make LINK a “Designed For Everyone” (Designed For Everyone), LINE will continue to strive to expand daily uses and promote the popularization of encrypted assets.