Ukraine’s Ministry of Defense claims it has received numerous requests for donations to its Armed Forces from foreigners, but it is unable to accept cryptocurrency revenues.
Russia started a full-fledged invasion of Ukraine on Thursday, triggering an immediate response from the Ukrainian government, which mobilized military, armed civilians, and appealed to foreign leaders for assistance.
On the same day, Ukraine’s Ministry of Defense established a special bank account for foreign currency wire transfers to benefit its military personnel. The Ukrainian army reported “many requests for donations from individuals and legal entities who are not residents of Ukraine.” One section of the document appears to have piqued the interest of social media users:
“National legislation does not allow the Ministry of Defense of Ukraine to use other payment systems (“Webmoney,” “Bitcoin,” “PayPal,” etc.)”
Crypto aficionados swiftly flocked to the Ukrainian government’s Twitter account, which provided the link, to request that digital currency donations be accepted. As an illustration, user TechLeakers wrote: “To obtain a Bitcoin cryptocurrency address, click here. As a result, it will be widely accepted.” However, some expressed alarm about the possibility of the Ukrainian Armed Forces receiving cryptocurrency donations, as MMusikwolf put it:
Do not donate crypto. The value fluctuates too much for it to be useful in this sense. [Fiat] Money has the highest liquidity of any asset and thus can be used fastest.
However, others, such as BiggieWhale, pointed out that stablecoin digital currencies such as USDT are tethered to the US dollar and hence do not experience the same kind of price fluctuation. At least one non-governmental organization in Ukraine, Come Back Alive, is presently accepting BTC donations to benefit the Ukrainian Army.
crypto donations could be helpful: its really easy, fast, cheap and secure
also consider this method
— timo (@tymo_tt) February 24, 2022
Global assets and foreign exchange rates, including the value of Bitcoin (BTC) and the Ukrainian Hryvnia, are currently undergoing significant selloffs as a result of Russia’s military advance.
Sam Bankman-Fried, CEO of FTX, touched on the topic of Eastern Europe’s currency destabilization as a result of the invasion. Bankman-Fried commented in a lengthy Twitter thread: “If you were in Ukraine right now, where would you put your money?” Additionally, he stated: “And, perhaps most significantly, there may be war. That is really detrimental to the world. Ignore all of this pricing nonsense. Venturing outside and doing something pleasant for someone is a good idea.”
According to the Ukrainian administration, 40 people were murdered and several dozens injured in the opening hours of the Russian invasion. Along with military locations in Ukraine, Russian missiles have been reported to have struck essential infrastructure, including airports and civilian establishments.
— Ω (@w4rw4tcher) February 24, 2022
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.