Since the Russian invasion of Ukraine began, cryptocurrency has become an essential tool to reach investors to solicit their support in raising funds for the country’s ongoing war effort.
In a recent tweet, Ukraine’s Deputy Minister of Digital Transformation, Alex Bornyakov, once again underlined how crucial crypto remains to the country’s defensive strategy. He also indicated that although the sentiment in the market has not been positive lately, he is convinced that crypto will not disappear. He tweeted the following:
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
The War In Ukraine
After the Russian invasion of Ukraine on February 24, the Ukrainian government used social media to solicit cryptocurrency donations. Since then, the Eastern European nation has relied on crypto to raise and secure funds, especially as digital currencies have unique advantages over other forms of cross-border payments, most notably the speed and anonymity of transactions compared to the traditional banking system.
As Michael Chobanian, founder of Ukraine’s largest cryptocurrency exchange noted KUNA in an interview:
“It takes about 10 minutes for Bitcoin block to close. And it takes three days to do the same through the banking system.”
While it is difficult to estimate how much Ukraine has raised through crypto, some sources state it is over $100 million, with crypto donations used for various purposes, including emergency equipment, food, water, fuel, and military equipment.
