Crypto is an essential tool for the defense of the country during the war in Ukraine. This is the assessment of the Deputy Minister for Digital Transformation. But finally, the attitude of Ukraine towards Bitcoin and Co. is ambivalent.
Crypto in Ukraine, according to Bornyakov, save lives
Because of its independence from governments, Bitcoin has long been considered a peace bringer in the crypto scene. After all, a war could already be hindered in its financing by the Bitcoin.
However, Ukraine has been proving since February that BTC and Co. can also offer new opportunities for financing a war. After Russian troops invaded, people called for donations on the Internet.
More than 100 million US dollars arrived in Ukraine in a very short time in various cryptos – this is how Alex Bornyakov, Deputy Minister for Digital Transformation, reports to CoinDesk at the beginning of March.
The largest part of this amount ended up directly with the Ukrainian authorities, which cooperated with the Ukrainian crypto exchange Kuna for their donation fund. Smaller amounts ended up with different NGOs.
On an official website, the Ukrainian government shows in which products the money was invested. These include only protective weapons such as bulletproof vests or helmets as well as raw materials, food and medicine.
There may be neither infantry weapons nor heavy military equipment in the list to prevent moral debates. Yesterday, Bornyakov took to Twitter to explain the role of independent digital means of payment.
Despite the bear market, crypto has become an important instrument of Ukrainian defense.
There are several advantages over traditional payment methods. About this:
Flexibility and speed that literally save our soldiers’ lives.
Despite the “bear market” crypto has become an essential tool of Ukraine’s defence, providing flexibility and speed that literally saved our soldiers’ lives. Every “crypto winter” leads to a “crypto spring”, but the industry is here to stay. https://t.co/Zhu93vso5T
– Alex Bornyakov (@abornyakov) July 26, 2022
Cryptos arrive directly at the end user at high speed. With the passing of time, the fundraising campaign has become increasingly quiet. In May, Ukraine released NFT collections to raise more funds.
The crypto scene is encouraging Bornyakov during the current critical phase.
Every crypto winter leads to a crypto spring, but the industry has come to stay.
Ukraine releases new NFTs
Just five days ago, the Digital War Museum of Ukraine released a third NFT collection. The Ministry of Digital Transformation and the Ukrainian Ministry of Culture are behind the project.
We wish it was the last drop of NFT artworks, but Russia continues to destroy our homeland🇺🇦
Therefore we represent the 3rd drop of the artworks dedicated to events between March 15 – 31. It includes masterpieces created by Maria Oz, Anton Abo, Oleksii Dyvysenko and the others. pic.twitter.com/T43keVzVgL
– Meta History: Museum of War (@Meta_History_UA) July 22, 2022
We wish it was the last release of NFT artworks, but Russia continues to destroy our homeland.
Says it in a tweet. All proceeds from sales benefit the Ukrainian state and its residents. The NFTs of the third collection show scenes that took place in the middle to the end of March and have a connection to the war.
Crypto Donations to Ukraine Decrease Due to Bear Market
The buying behavior of many crypto users is cyclical. During the peak period, you behave in a particularly generous way, but keep the money together in the event of a decline.
This pattern is also noticeable to Michael Chobanian. He founded the first and largest Ukrainian crypto exchange called Kuna in 2015. Only recently, he laments the sharply decreasing willingness to donate.
This is probably mainly due to the strong decline in the value of many cryptos. Meanwhile, the war is also causing less of a stir.
According to Chobanian, the fundraising campaign has caused crypto critics to rethink.
Even the last skeptics in the military and the government now understand: crypto has a value for them – and for our country.
In April, Ukraine legalized the use of crypto as a means of payment. In the same month, however, their use within Ukraine was severely restricted. The authorities prevented the outflow of fiat money abroad.
As a result, many Ukrainians used cryptocurrencies to transfer their money abroad. The state responded by banning the acquisition of digital assets.
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