Ukraine receives around $100 mn in crypto donations

Amidst its raging war with Russia, Ukraine has reportedly received a total of “near to $100 million” in cryptocurrency donations, as per Alex Bornyakov, Ukraine's deputy minister for Digital Transformation on Wednesday.

During an emergency online briefing,  Bornyakov stated that about $60 million of the $100 million was received in the primary fund managed by Kuna, a Ukrainian cryptocurrency exchange.

The funds managed by Kuna are being used to purchase non-lethal supplies such as petrol, food, and bulletproof vests for soldiers, according to Kuna's founder Michael Chobanian.

Moreover, Bornyakov said in the briefing that Ukraine's President Zelensky believes that the usage of cryptocurrency might be an 'economic breakthrough'.

The Ukrainian government is accepting donations in Bitcoin, Ethereum, USDT, Polkadot, and Dogecoin. Apart from the government, certain nonprofits and philanthropic organisations, like Come Back Alive, Ukraine DAO, Endaoment, and the Kyiv Independent, an English-language Ukrainian newspaper that has been covering the battle on its Twitter feed, are accepting cryptocurrency donations directly.

With Russia threatening Ukraine's banking system, the country has turned to Bitcoin as a decentralised method of accepting financial aid. Fear of surveillance in a wartime scenario complicates reliance on regular banks.

Furthermore, crypto donations are faster and more cost-effective than transferring money via traditional ways. Due to the fact that the blockchain is an open, distributed ledger capable of recording transactions, the money movement is visible.