Ukrainians are turning to cryptocurrency, reducing bank transfers

The volume of private money transfers to Ukraine is steadily decreasing. According to a new report from the National Bank of Ukraine (NBU), from January to May 2025, total remittances dropped from $4.1 billion to $3.5 billion, a 15% decline compared to the same period in 2024.

Compared to the same five months of 2023, the decline is even sharper — 27.3%.

The NBU data show a consistent decline in recent years:

• 2020 — $11.98 billion

• 2021 — $14 billion

• 2022 — $12.5 billion

• 2023 — $11.3 billion

• 2024 — $9.5 billion

At the same time, the NBU also notes a decrease in card spending abroad by Ukrainian residents.

“With growing employment levels among Ukrainian migrants, they are spending less using Ukrainian cards abroad: the average monthly volume of transactions in retail chains fell from $550 million in 2024 to $485 million in Q1 2025,” the NBU reported.

Additionally, due to tighter financial monitoring and currency regulations, people have stopped actively withdrawing cash from Ukrainian cards abroad.

While earlier this decline was mostly attributed to war-related factors, reduced social benefits for refugees in Europe, falling incomes, and inflation, analysts now increasingly point to two new trends:

1. Ongoing relocation of families and businesses abroad

2. Transition to cryptocurrencies, as people expect the situation to worsen

“I’ve revised my forecast for private remittances in 2025 downward — from $9.6 billion to $9.3 billion. Unfortunately, the current trends remain weak,” said financial analyst Andriy Shevchyshyn. “Relocation due to continued fighting, and the switch to crypto for transfers, will keep limiting inflows. There might be a seasonal uptick from seasonal workers, but I don’t expect anything substantial.”

Banks also report that they expect further declines in remittances due to account blocks and closures inside Ukraine.

“We warned that NBU-driven restrictions and increased monitoring of money transfers would lead to this — and now we’re seeing the results. People are turning to crypto. They’re opening accounts and cards primarily in Poland, where crypto is not banned, and usage is growing. There are no restrictions and no need to explain transactions — unlike in Ukrainian banks, where accounts are increasingly blocked or forcibly closed. Banks can’t do otherwise — it’s what the NBU demands. And so, the remittance market is shifting from the white (legal) zone into the gray,” said the treasury director of a major bank.