Notably, Ukraine’s Deputy Minister of Digital Transformation, Alex Bornyakov, emphasized in a tweet posted on July 26, that crypto remains crucial for the country’s defensive strategy.
Though the market has experienced some downside lately, he is convinced that crypto will not go away.
“Despite the ‘bear market’ crypto has become an essential tool of Ukraine’s defense, 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.”
The war in Ukraine
Following the Russian invasion of Ukraine on Feb 24, the Ukrainian government used social media to ask for cryptocurrency donations and since, the East European nation has relied on crypto as a tool for raising and securing funds.
Given that digital currencies have unique advantages over other forms of cross-border payments, mainly the speed and anonymity of transactions when compared to the traditional banking system.
As Michael Chobanian, founder of Ukraine’s largest cryptocurrency exchange, KUNA pointed out in an interview with Bloomberg:
“It takes 10 minutes for a Bitcoin block to close [average confirmation time for a Bitcoin payment]. And it takes about three days to do the same thing through the banking system.”
Although it is difficult to estimate how much Ukraine has raised through crypto, some sources state that is well over $100 million, with crypto donations having been used for various purposes including emergency equipment, food, water, fuel, and military equipment.
The crypto market
Meanwhile, cryptocurrencies have fallen sharply in recent weeks, and donations have lost some value after the drop. Nevertheless, this doesn’t seem to discourage Ukraine’s crypto enthusiasts from seeking to raise funds.
Obolon, Ukraine’s largest independent beer brand plans to sell non-fungible tokens (NFTs) to help it distribute free water for humanitarian aid.
The Ukrainian government also continues to pursue crypto fundraising opportunities with artists to create NFTs. The NFTs will be used to secure funds for the country’s defense and rebuilding process.