Ukrainian forces have received funding in bitcoin and other cryptocurrencies from around the world to support their efforts in the war against Russia.
In a report published by the American website Oil Price, writer Felicity Bradstock says that more than $570,000 in cryptocurrency has flowed to volunteer organizations and NGOs in Ukraine to help provide the military with military equipment, medical supplies, and drones, according to For a report issued by the company "Eliptic".
In addition, these donations support the development of a facial-recognition application to determine if a person is a Russian spy, and in the absence of strict vetting procedures for the flow of cryptocurrencies, it is easy to send them anonymously across borders.
“Cryptocurrencies are increasingly being used, and a source of financing for mass wars with the tacit consent of governments” – including Ukraine, says Tom Robinson, “Cryptocurrencies are particularly suitable for international fundraising because they are not subject to There is no central authority that can block transactions, as in the context of sanctions.”
The writer points out that digital currencies are currently enjoying great popularity in Ukraine in light of President Volodymyr Zelensky allowing the Central Bank to issue a digital currency, and he also worked with the government to legalize and regulate digital currencies so that it is easier for companies to trade them.
Among the cryptocurrency fundraisers is Come Back Alive, which was established in 2014 to provide military equipment, training services and medical supplies.
This foundation began accepting cryptocurrency donations in 2018 and received about $200,000 in the second half of 2021.
The writer adds that the Ukrainian Cyber Alliance has received $100,000 in funding to support its cyber attacks on Russian forces in recent years, and Myrotvorets, which is said to be closely linked to the Ukrainian government, is publishing Personal information about enemies of the state.
Ukraine could become a crypto superpower given the current cryptocurrency flows, the government allowing the central bank to create cryptocurrencies in 2021, lower taxes on them, simple paper transactions and the new payment method, all of which will encourage more individuals and companies to enter Crypto markets, which will also cement Ukraine's position as an innovation and development hub in Eastern Europe, is already creating a large pool of developers and programmers to support the country's digital transformation.
According to the Ukrainian Deputy Prime Minister of the Department of Digital Transformation, Mikhailo Fedorov, the move to legalize and regulate the field of cryptocurrencies will allow the development of a new industry that will attract transparent investments and will enhance Ukraine's image as a high-tech country.
Cryptocurrencies have become more important to the Ukrainian economy in recent months after the threat of Russian invasion (Getty Images)
economical weapon
According to a scale created by data analysis company Chain Analysis, Ukraine ranks fourth in the global cryptocurrency adoption index, with the value of the country’s currencies circulating at $8 billion, and the equivalent of $150 million per day. To digital currencies to invest their money, especially with the lack of a strong alternative in the stock market.
The writer notes that the Ukrainian Digital Ministry is so confident in the country’s standing in the international cryptocurrency market that it has set a goal of doubling the share of technology in the national GDP from
5% to 10%,
and also expects to double the number of workers in the technology sector to 500,000.
New companies have appeared in the Ukrainian crypto market, while the popular cryptocurrency exchange Binance is preparing to launch a new digital currency payment card in Ukraine, making it in a dominant position.
The company's general manager in Ukraine Kirill Komyakov said that the Binance card is not yet available to Ukrainian users, but the company is working hard to launch it, describing it as one of the company's top priorities for 2022.
Over the past year, Ukraine has been working hard to establish itself as a cryptocurrency hub thanks to the recent legalization and regulation of the field, and it has developed a group of tech professionals and expects to establish itself as a cryptocurrency hub in Europe in the coming years.
The writer stresses that digital currencies have become more important to the Ukrainian economy in recent months, as the threat of Russian invasion has prompted individuals and companies from around the world to send money to volunteer groups and government-related groups to help them prepare, and this may be the first example of the use of digital currencies to support war effort and make it an integral part of the national economy.