Since the recent invasion of Ukraine by the Russian military, citizens and the government of Ukraine have struggled to defend themselves. This is mostly because of the economic hit that was caused by the conflict. But, how does cryptocurrency come into play and how is it helping the Ukrainian people?
Cryptocurrency has played a major role in the Ukrainian/Russian conflict due to the Twitter outcry of Vice Prime Minister Mykhailo Federov. Since most currency held in financial institutions is regulated and has limits, the government found a way to seek help through cryptocurrency donations.
Knowing more about the conflict and the economic struggles the Ukrainian people have had can help you understand the need for alternative financial solutions. Keep reading to learn more about cryptocurrency’s role in the Ukrainian/Russian conflict.
Ukraine and Cryptocurrency Before the Conflict
The recent outcry for financial donations via cryptocurrency exchanges is not the first experience with the digital currency for Ukraine. In fact, the Ukrainian government and citizens were one of the early adopters of various cryptocurrencies such as Bitcoin.
It was reported that prior to the conflict, Ukraine was ranked fourth in the world in the cryptocurrency industry. This is because as with many who have invested in crypto, it is more attractive since it is not regulated the way standard currencies are.
Because the Ukrainian government is a big supporter of cryptocurrency since the beginning, it only makes sense that they would turn to it for assistance. Crypto such as Ethereum, Bitcoin, and others have become a great second source of income for not only the government but also Ukrainian citizens.
The Impact of the Conflict on Ukrainian Economy
The Ukraine/Russian conflict has wreaked havoc on the Ukrainian economy since the Russian military succeeded in creating blockades from all sides. This included the trade routes along the Black Sea with the addition of Russian patrols.
Because of this, the Ukrainian government and citizens have been unable to gain access to what they need to fight back in an impactful way. Many emergency measures have been put in place including limits on how much money citizens can withdraw from their bank accounts on a given day.
The freezes and limits on funds have tied the hands of many Ukrainian citizens and have made it near impossible for them to know how they will survive. This is especially true for those who now are unsure how they will continue to support their families without their jobs, at least during the conflict.
Many Ukrainian citizens who have fled to other countries since the conflict began have stated that if it were not for their cryptocurrency funds, they would not be able to make it. Since many currently do not have access to their bank accounts, they have had to rely on Bitcoin and other crypto funds.
Ukrainian Tweets for Cryptocurrency Help
In a desperate attempt to gain money to fight back against the Russian government, Vice Prime Minister Mykhailo Federov turned to Twitter for help. He sent out a tweet asking for people around the world to donate funds using cryptocurrency.
Since cryptocurrency such as Bitcoin, and Ethereum is not regulated by the government, it seems like a great way to raise the funds needed. This move by the Vice Prime Minister proved to be an effective step in helping the military.
In his tweet, he not only asked for donations but shared several cryptocurrency exchange addresses for people to use. This included addresses for BTC, ETH, and stable coin Tether as a crowdfunding method to raise needed funds.
Cryptocurrency’s Role in the Conflict
Since Federov’s tweet, donations have been pouring in from all over the world. This includes, so far, over $63 million in cryptocurrency that has been donated to the Ukrainian government. These funds have come from more than 100,000 different users.
While the types of crypto that have been donated vary, the impact is the same. Some individuals donated Bitcoin, Ethereum, Tether, Dogecoin, and many other types. The point is that this has gone a long way to helping the Ukrainian government fight back against Russia.
The role of cryptocurrency in the conflict has become a major one and does not seem to be slowing down. In fact, Federov stated that the goal is to have more than $100 million in cryptocurrency be donated to the cause.
How are the Cryptocurrency Donations Being Used?
While some people may be somewhat skeptical about the number of donations that have been given to the Ukrainian government, it has been made public how they are using the funds. In fact, Federov has shown that at least $15 million has been used so far to help the military.
This money has been used thus far to supply food, night-vision goggles, and bulletproof vests to the Ukrainian military. This has been possible since many of the suppliers have agreed to accept cryptocurrency as payment to help with the cause.
The ability to use cryptocurrency to pay for needed supplies has made the process much easier since the transactions happen much faster than standard payment methods. This has enabled the government of Ukraine to access these supplies in a faster way.
Overall, the Ukrainian/Russian conflict has resulted in an economic nightmare for many Ukrainian citizens and the military. With being blocked in by the Russian military, getting access to supplies to help defend themselves has become difficult.
With the help of cryptocurrency donations, the Ukrainian government has been able to get needed supplies from the military. This has resulted in the military being able to have what they need to defend themselves and the country against the Russian government.
All in all, it is important to note that if it had not been for the ability to seek out and access funds through cryptocurrency exchanges, the Ukrainian government may have fallen under Russian control. At least with the various donations of Tether, Ethereum, and Bitcoin, they have an opportunity to fight back and gain control of their country.