Monday, 27 March 2023

Crypto News

Ukraine netted $70M in crypto donations since start of Russia conflict

Ukraine netted $70M in crypto donations since start of Russia conflict

Ukraine has received over $70 million in the form of cryptocurrencies since the start of the Russian-Ukrainian conflict, providing the nation with military equipment and humanitarian assistance.

The figures came from a Feb. 24 report by blockchain data platform Chainalysis, which found the majority of the funds to have come in the form of Ether (ETH) and Bitcoin (BTC).

ETH donors led the way with $28.9 million given, while donors of BTC and Tether (USDT) chipped in $22.8 million and $11.59 million respectively.

Cryptocurrencies donated to Ukraine wallets provided by the Ukrainian government. Source: Chainalysis.

Donations have also come in the form of nonfungible tokens (NFTs), such as UkraineDAO’s auction of a Ukrainian flag NFT which sold for $6.1 million.

Around 80% of the total $70 million donated came in the first few months of the war, with the speed of cryptocurrency payments fast-tracking the country’s ability to respond to the Russian invasion, Ukrainian deputy digital minister Alex Bornyakov explained in an interview with Yahoo Finance UK on Feb. 24:

“If we used the traditional financial system it was going to take days […] We were able to secure the purchase of vital items in no time at all via crypto, and what is amazing is that around 60% of suppliers were able to accept crypto, I didn’t expect this.”

Bornyakov added that the Crypto Fund Aid For Ukraine was an “absolute success” and that he was blown away by not only the amount of donations that came through but the ease at which the digital ministry could access those funds to initiate its defense.

Alona Shevchenko, co-founder of Ukraine DAO also explained to Yahoo Finance that cryptocurrencies provided a solution when restrictions were imposed on the Ukrainian central banking system:

“The central bank introduced limits on foreign currency transfers in and out of Ukraine to stop the run on the hryvnia […] Thanks to crypto we were able to cover some of our defenders’ immediate needs, there was literally no other way at the time.”

As per a tweet from Mykhailo Fedorov, the Vice Prime Minister of Ukraine and Minister of Digital Transformation of Ukraine in August last year, much of the cryptocurrency payments to the Ukraine digital ministry have been used to fund the country’s military equipment, armor clothing and a range of vehicles and medicine.

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