Ukraine is seen as a pro-cryptocurrency and blockchain nation, which is why they have attracted more digital asset donations than Russia in the year of war. Digital asset donations provide a way for people to give money to groups or causes they support without physically being present. This makes them ideal for humanitarian purposes in conflict zones, such as the Ukraine/Russia war. By using digital asset donations, Ukraine has shown that cryptocurrencies and blockchain technology are valuable tools for solving humanitarian problems.
Crypto donations pour into pro-Russian groups but Ukrainian groups spend more on war efforts
Since the start of the Ukraine-Russia proxy war, supporters on both sides of the conflict have been sending money to their chosen side. However, while pro-Russian groups have raised around four and a half million dollars in crypto for the Russian military and associated militias, Ukrainian groups have sent over two and a half million more in cryptocurrency.
The vast majority of this money (around 212 million dollars) went towards supporting Ukraine in the war effort. In contrast, pro-Russian groups have raised around four and a half million dollars in crypto for the Russian military and associated militias.
Ukraine Shows Why Cryptocurrency is Rising in Popularity
In recent years, Ukraine has seen a surge in cryptocurrency adoption. According to the country’s Digital Minister, Alex Bornyakov, 60% of military suppliers have accepted to be paid in digital currencies. This is thanks in part to initiatives like “Projectapaak”, which was created to help military personnel transition to using digital currencies.
This success comes as no surprise, as Ukraine has had to face some of the most pressing challenges in recent memory. Poverty rates are high, and the nation has been embroiled in a war with Russia since 2014. Despite this, the Ukrainian people have remained resilient, turning to cryptocurrency as a means of financial support.
Russian attempts to emulate Ukraine’s success have thus far been unsuccessful. For example, despite having a population over twice that of Ukraine’s, Russia has only sent $21 million worth of cryptos to the struggling nation. In addition, Russian authorities have been aggressive in their efforts to suppress crypto adoption. In March of this year, Moscow banned all initial coin offerings (ICOs), a method used by many crypto startups to raise funds.
Ukraine Supporters Sent Over $212 Million in Cryptocurrency
It is not just the government that has embraced cryptocurrency, however. Over 100,000 people have sent crypto to Ukraine since the start of the war with Russia. This assistance has been vital, as Ukraine has faced difficult economic conditions since hostilities began. In addition, transferring money using crypto allows for greater privacy than traditional methods.
Interestingly, many of these supporters are not from Ukraine proper. Instead, they are citizens of countries like Canada and the United States that have expressed solidarity with Kiev. This show of support is important, as it demonstrates that cryptocurrencies transcend national borders.
Overall, Ukraine’s successful foray into crypto marks an important step forward for the industry. It proves that decentralized digital currencies can be utilized in a variety of situations – even during times of crisis.
Despite the ongoing war between Ukraine and Russia, Ukraine has managed to raise more cryptocurrency than Russia in the past year. The reason for this shift is because Ukraine is trying to use cryptocurrency as a way to bypass the current financial system. Russia, on the other hand, is trying to control the cryptocurrency industry.