How cryptocurrencies are providing a much-needed lifeline to Ukraine

If Ukraine is going to be able to survive the onslaught from Russia, the nation will owe an eternity of gratitude to Blockchain and cryptocurrency technology. This blog explores the growing impact of crypto technology on modern warfare.

Official press releases from Ukraine have highlighted how the country has developed a new source of wartime financial support in the form of crypto.

In the first few weeks of Russia’s invasion into Ukraine, people around the world have donated millions of dollars directly to the Ukrainian government, armed forces and various associated charities via Blockchain.

Supporting people in their ‘fight to freedom’

The Ukraine government has launched a website to centralise its cryptocurrency fundraising efforts. The web page set up by the Ministry of Digital Transformation of Ukraine allows visitors to donate “crypto to Ukraine to support people in their fight for freedom”.

The website accepts a range of different coins, including Bitcoin (BTC), Ethereum (ETH), Terra (LUNA), Solana (SOL), Polkadot (DOT) and many more. The website also accepts Tether (USDT), a coin which is pegged to the USD. The webpage is powered by Everstake, which is the biggest decentralised staking provider in the Blockchain industry.

Since its launch, the website has managed to raise $71,704,258 USD in crypto donations, with an advertised target of $200,000,000.

How the crypto community is helping Ukraine

Mykhailo Fedorov, Vice Prime Minister – Minister of Digital Transformation of Ukraine, tweeted, “Every helmet, bulletproof vest and night vision device save the lives of Ukrainian soldiers. Thus, we must continue to support our defenders. Thanks so much to everyone from the crypto community for supporting Ukraine!”.

Ukraine crypto

Cryptocurrency donations represent a relatively small percentage of the total amount of donations that Ukraine has received. The United Nations Refugee Agency estimated on March 18th that a total of $1.12 billion had been sent to support Ukraine’s government, provide economic assistance and help neighbouring countries handle an influx of refugees.

Despite crypto representing less than 10% of total donations, its importance should not be underestimated. Ukrainian officials have praised the utility of cryptocurrency as the speed at which the donations can be received and utilised is far quicker than conventional dollar-based donations.

The relief effort is ground-breaking; never before has a sovereign nation funded its defence efforts via cryptocurrency.