 |
| Ukraine turns to cryptocurrency to fight Russia |
Ukraine’s official Twitter account has called for donations of cryptocurrency, including Bitcoin, Ethereum, and cryptocurrency pegged to the dollar, Tether.
Ukraine's Deputy Prime Minister Mikhailo Fedorov confirmed via his Twitter account that the call for donations was genuine and urged people to stand by Ukraine.
As of press time, the Ukrainian government and NGOs supporting the military have raised $13.7 million in thousands of cryptocurrency donations since the invasion began.
According to research firm Elliptic, an NGO has received a single donation of 80 bitcoins worth $3 million.
The Decentralized Autonomous Organization (DAO) was created to support Ukrainians. NFTs were sold to raise funds for the Ukrainian people and army.
These donations are usually made through banks. But cryptocurrencies emerged in Ukraine as a quick and easy way to transact with money.
“They do not trust the local currency, and most importantly, they do not trust the banks,” said Ilya Polosukhin, Ukrainian partner in the NEAR protocol, an Ethereum competitor. This makes Ukraine a natural location for cryptocurrency adoption.
Ukraine is famous for its artistic talents with more than 200,000 skilled workers. Last year, the IT export business amounted to 6.8 billion US dollars.
Last year, cryptocurrencies were officially legalized by a law regulating digital financial assets.
Ukraine asks for cryptocurrency donations to fight Russia
The country ranks fourth in Chainalysis' global cryptocurrency adoption index, after Vietnam, India and Pakistan. About $8 billion worth of cryptocurrency crosses the country every year.
The international crypto community has largely responded to Ukraine's message of support. Ethereum founder Vitalik Buterin tweeted that hacking was a crime against the Ukrainian and Russian people.
Buterin later retweeted a statement from Unchain.fund targeting humanitarian aid. Members of the Russian performing arts group Pussy Riot founded the Ukrainian DAO to raise funds using Web3 technology and community power.
There is also RELI3F, a humanitarian relief program created by NFT/web3 artists who work together to support the Ukrainian people. The CEO of FTX announced via Twitter that the company is offering $25 to every Ukrainian citizen through FTX.