At the onset of the Russian invasion, the Ukrainian administration requested donations. The community reacted by sending more than $50 million in cryptocurrencies. What did Ukraine do with this money?
Ukraine spends the cryptocurrency it has received since the beginning of the conflict.
Alex Bornyakov, Ukraine’s Vice-Minister for Digital Transformation, detailed on Twitter how cryptocurrency donations have been used by the country. The amount received is expected to quadruple this week, according to his tweet:
The Crypto Fund of Ukraine raised $50M in crypto in a week to support #Ukraine 👊🏻 An incredible unity before Putin's encroachment on freedom and democracy. Aiming for $100M this week. We WILL win! 🇺🇦 #StandWithUkraine️
— Alex Bornyakov (@abornyakov) March 4, 2022
Ukraine had received $53 million in cryptocurrencies as of March 3, which it spent as follows:
- 69% (almost $36 million) in military support
- 19% (more than $10 million) for humanitarian aid
- 12% (more than $6 million) for general support
Unsurprisingly, the “army” category collects the most bitcoin, as Ukrainians defend themselves against Russian land and air attack.
Equipment providers accepting cryptocurrency
When Ukraine initially began accepting bitcoin donations, people were concerned about its capacity to “cash out” and convert those digital currencies into fiat currency. Alternatively, they can be used to pay merchants and services directly.
However, it appears that their fears were unjustified. According to Alex Bornyakov, 40% of Ukrainian providers accept cryptocurrency payments directly. The crypto-assets are then exchanged into euros and dollars.
The Deputy Minister of Digital Transformation also revealed that the majority of bitcoin donations are made by people who wish to help Ukraine rather than businesses. Cryptocurrencies have been used with equipment dealers to purchase armor, bandages, night vision equipment, and other weapons.
Cryptocurrencies, unbiased payment methods
Some are concerned about Ukraine seizing cryptocurrency, thinking that the ecosystem may be utilized for political purposes. As a result, it is worth recalling that Bitcoin (BTC) and its ilk are by definition apolitical – it is exactly because of this that value transfers may take place even within a country at war.
Cryptocurrencies, like dollars or euros, are merely a tool that may be used to support causes that are important to its owners.
