Crypto contributions and sales are not new. The Ukraine-Russia war has shown the benefits of utilizing digital currency for military help.When Russia invaded Ukraine in February 2022, the Ukrainian government used social media to solicit bitcoin, ethereum, stablecoin, and other cryptocurrency donations.Almost 100,000 individuals helped the Ukrainian military.
Cryptocurrencies for military help go beyond contributions. Ukrainian deputy digital minister Alex Bornyakov said the country has been using crypto to buy helmets, bulletproof vests, optical sights, and other war gear.Bornyakov reported that 60% of military gear vendors accepted crypto, which benefits the government while the fight continues.
After the invasion, Kyiv was well-positioned to gain from crypto network growth. Last year, a business research organization ranked Ukraine fourth worldwide for bitcoin usage. Ukraine legalized cryptocurrency in September 2021.Digital currency purchases are faster. The digital minister said traditional finance methods would have taken too long and the Ukrainian military needed support quickly. Crypto purchases were fast and easy.
As overseas donations poured in—nearly $55 million in a week in March—the Ukrainian government discovered that crypto donations were the fastest method to manage the money.The world’s largest cryptocurrency exchange, Binance, has formed a “Ukraine Emergency Relief Fund” that takes crypto donations. The Ukrainian government received $10 million more.
Decentralized bitcoin payments are another benefit of adopting crypto for military purchases. Crypto payments may be made instantaneously without banks or payment processors.
Bornyakov stated, “We were able to secure the acquisition of important materials in no time via crypto, and what is astonishing is that approximately 60% of suppliers were able to take crypto, I didn’t anticipate this.”
The Ukrainian government stated that some donations came from Russians who supported Ukraine’s defense operations due to blockchain technology’s transparency.
Ukraine’s military help through cryptocurrency is notable. In reality, it developed the Crypto Fund Help For Ukraine program.Kuna, Everstake, and the Ukrainian Ministry of Digital Transformation power CFAK.CFAK raised one-third of all donations. Bornyakov lauded the campaign’s fundraising and crypto’s efficiency and quickness.
Bornyakov, the government’s cryptocurrency spokeswoman, says Ukraine has received $100 million in bitcoin donations.
At a recent online emergency briefing, the official revealed that about $60 million of the $100 million was placed into the primary fund maintained by the Ukrainian bitcoin exchange Kuna.
Cryptocurrencies for military help will certainly continue during the Ukraine-Russia war.
Crypto may not solve Ukraine’s problems, but it supports the military well.
It would be fascinating to observe how cryptocurrencies are utilized in other conflicts and crises as their use grows.
