The Ukrainian government called for donations at the start of the Russian invasion. And the community responded, sending over $50 million in cryptocurrencies. How did Ukraine spend this money?
Ukraine spends cryptocurrencies received since the start of the conflict
It was Alex Bornyakov, the Deputy Minister of Digital Transformation, who detailed on Twitter how the cryptocurrency donations were used by Ukraine. He estimates in passing that the amount received will double this week:
The Crypto Fund of Ukraine raised $50M in crypto in a week to support Ukraine 👊🏻 An incredible unity before Putin’s encroachment on freedom and democracy. Aiming for $100M this week. We WILL win! 🇺🇦 StandWithUkraine️
– Alex Bornyakov (@abornyakov) March 4, 2022
As of March 3, Ukraine had received $53 million in cryptocurrencies, which it used as follows:
- 69% (over $36 million) in support of the military
- 19% (over $10 million) for humanitarian aid
- 12% (over $6 million) for general aid
Sanstates
Unsurprisingly, the “military” category is garnering the most cryptocurrencies, as Ukrainians are defending themselves against Russian ground and air invasion
Equipment suppliers that accept cryptocurrencies
When Ukraine began asking for donations in cryptocurrencies, some worried about its ability to “cash out”, and turn these digital currencies into fiat. Or simply pay merchants and services directly with them.
But it would appear that these concerns were unfounded. According to Alex Bornyakov, 40% of suppliers accept payments from Ukraine directly in cryptocurrencies. For the rest, crypto assets are converted into euros and dollars.
The Deputy Minister of Digital Transformation also confirmed that most cryptocurrency donations come from individuals who want to support Ukraine, rather than from companies. For weaponry, cryptocurrencies have been used with equipment suppliers to buy protection, bandages, night vision equipment, etc.
Cryptos, non-political payment tools
There are concerns that Ukraine is taking over cryptocurrencies, fearing that the ecosystem will be used politically. It should be remembered that Bitcoin (BTC) and its ilk are inherently apolitical – it is this very aspect that allows value to be exchanged even within a country at war.
Just as dollars or euros can be sent to causes dear to their holders, so cryptocurrencies are merely a tool. Except that unlike a ruble, for example, they cannot be blocked at banks…