As war wages on between Ukraine and Russia, it’s of no surprise to anyone that the whole world has been affected negatively in some way or the other. Well, this phase is especially true for Ukraine, as the country’s entire administrative and financial system has taken a huge toll. During this dire time, the country is forced to rely on foreign donations to get by and support its citizens. Plus, to fund the godforsaken war for survival.
How is crypto proving useful for Ukraine?
Recently, in an interview with the media, Ukraine’s deputy minister of Digital Transformation, Alex Bornyakov shared how foreign donations are playing a crucial role in supporting them, especially crypto donations. As of this day, the government has received around $100 million in crypto donations which not only comprises crypto tokens but also NFTs and to this date the government has not only used these donations to get basic amenities for its citizens but also to arrange 5,550 bulletproof vests, 410,000 packed lunches and 500 helmets for their valiant soldiers. Yes, you read that right. This may be the very first instance of crypto being used not only to support the citizens but a country’s army as well to fight an actual war.
Not only this, but some of Ukraine’s vendors have also come forward and started to accept crypto in terms of payments to help Ukraine.
Some of the military suppliers have accounts in crypto. Actually, some of them have companies and bank accounts in jurisdictions where cryptos are allowed. And they can just get crypto in ethereum, bitcoin and, of course, in some stablecoins-Ukraine’s deputy minister of Digital Transformation, Alex Bornyakov
How is Ukraine managing its new crypto operations?
Bornyakov has stated that the whole crypto operation is based on a few key factors that include Ukraine’s Kuna crypto exchange, five signatories and a few other government officials.
As per Bornyakov, the Kuna crypto exchange already had a developed working crypto payment network for transacting crypto funds on behalf of the government. Hence, it is currently being used to receive crypto donations and also to handle all major crypto transactions on behalf of the government.
Further, there are five official signatories in charge of handling the entire crypto fund of the country and out of them, three are always required for making any executive decision. They are the major decision-makers of how and when to spend the crypto funds when the demand rises.
Along with the above, the Ukrainian government is also requesting international exchanges to discontinue their services in Russia. So, Russia can’t in any way evade the economic sanction imposed on them or get access to any crypto-financial support internationally.
Bornyakov has further clarified about crypto that:
It is easier, not complicated, transparent, and faster in comparison to a SWIFT transaction, which could take more than a day
That will be all for now folks. Make sure to subscribe to our newsletter to receive weekly updates on all kinds of interesting topics.