The Ukrainian government has already spent around $10 million in cryptocurrency donations.
As the country prepares to repel a Russian invasion, the Ukrainian government is utilising cryptocurrency donations to purchase crucial commodities such as gasoline, food, and military equipment. A total of $10 million has been spent so far.
According to blockchain data, the donations are being distributed from the government’s digital wallets, which were set up by Kyiv-based crypto exchange Kuna, to other digital wallets before being spent. Around $6.5 million in ether had been transferred from a government wallet to the exchange by Monday morning.
“Because we’re evacuating people, we’re sending money to buy gasoline, food, and water for those who are fleeing.” Kuna founder Michael Chobanian told, “We’re providing some money to the local military personnel so they can buy some things locally.” According to him, the government is also purchasing drones, thermal vision goggles, and gasoline.
The entrance of more than $16 million in cryptocurrency into three digital wallets linked to Ukraine’s anti-Russian defence. At the time of publication, one wallet put up by a local non-profit had raised almost $7 million in bitcoin. By Sunday, the two others (one bitcoin and one ether) Kuna had set up on behalf of the Ukrainian government had raised more than $8 million in total.
On Monday, Chobanian released a statistic on his Twitter account showing that overall crypto support for the government of Ukraine has topped $12 million through a mix of cryptocurrencies and stablecoins. Government and non-governmental groups have reached a total of $20 million, according to Elliptic, a company that helps track transactions on blockchains.
As Russia drew in on Ukraine’s capital, Kyiv, the monies were collected. In an effort to prevent the conflict, western nations decided on Saturday to impose tighter financial penalties on Russia. Ukraine’s President Volodymyr Zelenskyy agreed to begin peace negotiations on Sunday, just as Russian President Vladimir Putin activated the country’s nuclear deterrence force.
Blockchain data demonstrates that bitcoin donations generated by the government are disbursed fast. Almost all of the bitcoin gathered, totaling around $4 million, has been allocated to multiple wallets.
“We’re able to buy everything in Europe with cryptocurrency.” Many of my crypto business buddies are assisting me. Chobanian explained, “We’re sending them crypto, and they’re paying for [items] in euros.”
On Sunday, Chobanian stated that the majority of bitcoins being sent out are for minor transactions, and that the government is reserving cash for larger purchases. Bitcoin was initially sent out of the government wallet in small sums (usually less than $100). In one transaction on Sunday, about $26,000 worth of bitcoin was removed from the wallet. According to transaction statistics from Etherscan, only about $66,000 in ether remained in the government’s wallet at the time of publication on Monday.
Vendors are increasingly accepting crypto in exchange for supplies, according to Chobanian, and crypto is proving to be more efficient than traditional payment methods.
“Using regular techniques to [transfer money] is quite difficult. To begin with, it takes a long time. Second, there is a great deal of bureaucracy and so on. We are quite quick here. So we get money and almost immediately spend it,” Chobanian explained.
Chobanian said on Sunday that the government plans to use the funds for some major acquisitions, but he didn’t say what they would be. Larger purchases are being made, based on the significant draining of cash from the Ethereum wallet on Monday.
“Right now, we’re just like a crypto bank for the government,” he explained.
Not everyone is having a good time with their finances. A wallet linked to a Ukrainian non-profit called “Come Back Alive” contains about $7 million in bitcoin. Almost all of the donations were raised in just a few days, with the goal of assisting Ukraine’s military. Only $1.6 million in bitcoin has been removed from the wallet. To put it another way, even in the midst of a crisis, millions of dollars remain untouched. By the time this article was published, the charity had not responded to demands for comment.
Meanwhile, the central bank of Ukraine has shut down the country’s currency market and restricted cash withdrawals. According to Chobanian, attempts are being made to remove these limits in order to increase money redistribution efficiency.
According to Chobanian, all cryptocurrency exchanges in Ukraine are essentially doing the same thing.
“We’re united, and we understand that if we don’t act now, it’ll be too late.” Chobanian stated, “We don’t have a future for our country.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
