Around 70 percent of the Russian military were ready for a full-scale invasion, which heightened tensions between Moscow and Kiev. In spite of their disadvantage, the underdogs have a secret weapon to “crowdfund” the war with Russia.
Ukraine, which is economically and militarily much smaller than Russia, has looked to cryptocurrencies for assistance. According to a survey by blockchain analytics startup Elliptic, donations to Ukrainian NGOs in Bitcoin have increased dramatically.
Several hundred thousand dollars were given to Ukrainian non-profits and volunteer organisations. Over the past ten years, mostly to raise money for soldiers, ammunition, and medical supplies. a rise of nearly 900 per cent in 2021 is shown in the graph.
“Elliptic has identified several cryptocurrency wallets used by these volunteer groups and NGOs, which have collectively received funds totaling just over $570,000 – much of it over the past year.”
Donors from around the world can now bypass financial institutions that could otherwise reject contributions to nonprofits by using Bitcoin as an essential alternative financing method. Come Back Alive, the Ukrainian Cyber Alliance, and the Belarusian Cyber-Partisans are part of this club/group.
Activists have put the crypto they received to a variety of good uses. Like providing the Ukrainian army with medical supplies and drones for military purposes. financing the creation of a facial recognition programme to help track down Russian mercenary and/or agents would be an excellent next step.
Litecoin, Ethereum, and stablecoins totaled nearly $100,000 in donations to the Ukrainian Cyber Alliance alone last year. There were still some crypto-related donations, however. Traditionally, most of the money came through standard payment methods using fiat currency.
Nevertheless, thank you
Over time, cryptocurrency has proven to be a reliable and popular option. Tom Robinson, Elliptic’s principal scientist, outlined a few benefits. He stated his opinion:
“Cryptocurrency is particularly suited to international fundraising, because it doesn’t respect national boundaries and it’s censorship-resistant. There is no central authority that can block transactions, for example in response to sanctions.”
In general, Ukraine’s relationship with digital assets has been on-and-off. Despite this, cryptocurrency adoption at the grassroots level continued to make headlines in this country. According to the Chainalysis analysis, Ukraine placed first in the Eastern European region. In addition, there was a bill in place that would have made it legal to pay with cryptocurrencies.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.