Crypto fund for Ukraine or How cryptocurrencies are funding Ukraine fight against Russia
Categories: Crypto News
The Ukrainian government has gone all out soliciting aid from the cryptocurrency community and the efforts have borne fruit and Crypto fund for Ukraine. Since February 26 when officials began tweeting calls for donations, the country has received over $71.66 million of its $200-million target as on March 31. Just four days after its calls for donations began, Ukraine’s official wallets (then two, which were later merged) attracted more than $10.2 million (9.2 million euros). Since then, close to $100 million in cryptocurrency has been raised and Michael Chobanian, founder of Ukrainian crypto exchange Kuna, said his platform accounts for 60 percent of all donations.
As of mid-March, Ukraine had spent around $34 million of the funds either as crypto tokens where accepted or converting it to traditional currency, Alex Bornyakov, the country’s deputy minister for digital transformation, told The Associated Press and Crypto fund for Ukraine.The government has also taken steps to formally welcome crypto into its policy. In March, Ukraine’s President Volodymyr Zelenskyy also signed a cryptocurrency regulatory framework into law.
Notably, data from the US’ Congressional Research Service report (dated January) shows that crypto donations so far equal close to 1 percent of Ukraine’s annual pre-war defence budget.The site also lists the cryptos accepted—Bitcoin (BTC), Ethereum (ETH), Tether (USDT ERC-20), Tether (USDT TRC-20), Terra (LUNA), Solana (SOL), Polkadot (DOT), Cardano (ADA), Dogecoin (DOGE), Algorand (ALGO), Hedera (HBAR), Monero (XMR), ICON (ICX) and Casper (CSPR)].
A quick look through the website showed that the Ukrainian government is also accepting fiat donations (US, Australian and Canadian dollars, euros and pounds) via the platform.“We are still collecting crypto. It is being spent on aid like daily rations and bulletproof vests and helmets,” Chobanian told AFP. He added that the majority of the donations were Bitcoin, Ethereum and Tether.
There is no obvious proof that proposes cryptocurrencies are directly funding Ukraine's fight against Russia and Crypto fund for Ukraine. In any case, the facts really confirm that cryptographic forms of money play had an impact in working with the helpful guide endeavors to help Ukrainians impacted by the continuous clash with Russia.
Cryptocurrencies like Bitcoin, Ethereum, and others have made it more straightforward for individuals all over the planet to give cash to different compassionate causes, including those supporting individuals impacted by the contention in Ukraine. Digital currencies consider quick, secure, and straightforward exchanges without the requirement for mediators, which can be especially useful in struggle zones where conventional financial frameworks might be untrustworthy or inaccessible.
Moreover, a few reports recommend that Ukrainian warriors and volunteers might have utilized digital forms of money to subsidize their tasks and buy gear, as they might experience issues getting to conventional sources of financial support because of the continuous clash and Crypto fund for Ukraine. Be that as it may, it is hard to affirm these reports as they depend on episodic proof.
It is vital to take note of that cryptocurrencies are not a panacea for the difficulties looked by Ukraine or some other nation in struggle. While they can be useful in specific settings, they additionally act dangers such like unpredictability and absence of guideline. At last, settling clashes requires political arrangements and the help of the global local area.