According to data from blockchain analytics firm Elliptic, crypto is giving the military in Ukraine the money it needs to defend itself. More than $4 million in donations have made their way into the Eastern European country, and much of that money stems from bitcoin and crypto.
Ukraine Is Getting a Lot of Crypto
The world was shocked last week when Vladimir Putin – the leader of Russia – invaded his country’s neighbor of Ukraine. As a means of helping the impoverished country fight to defend itself, many have turned to crypto to provide donations so the nation’s military can have the food, ammunition, and supplies to put up a fight against the invading Russian forces. At the time of writing, roughly $4.1 million has been collected.
One NGO that remains unnamed at press time garnered nearly $700,000 in bitcoin. From there, the organization saw its donations expand into the $3 million range. One of the big reasons so many people have turned to crypto is because it cannot be halted or interfered with the way fiat can. Many banks can come under the control of their respective governments during times of political strife. This means bank accounts can be frozen – as we’ve seen with the truckers in Canada – and the flow of traditional money can be instantly stopped.
With bitcoin and crypto, many analysts agree that the rules don’t necessarily apply. Transactions can continue forward regardless of who’s in charge or what’s happening in the world. Elliptic chief scientist Tom Robinson explained in an interview:
Cryptocurrency is particularly suited to international fundraising because it doesn’t respect national boundaries and it’s censorship resistant. There is no central authority that can block transactions, for example in response to sanctions… Cryptocurrency is increasingly being used to crowdfund war with the tacit approval of governments.
Many organizations have emerged throughout the years to push for Ukrainian independence. These groups increased tenfold when Ukraine’s pro-Russia president Viktor Yanukovych was removed from office eight years ago. Since then, voices against alleged Russian tyranny have increased tenfold.
These organizations that support Ukraine often received private funds from bank wires and payment apps, but these have been limited over the past few years and they are now seeing several crypto donations making their way into their wallets. Michael Chobanian – founder of Kuna, a Ukrainian crypto exchange – says that nobody really trusts the government anymore, nor are they willing to take a chance that their standard fiat options will be cut off by unseen forces.
Which Organizations Are Around?
We don’t trust the government. We don’t trust the banking system. We don’t trust the local currency. Most of the people have nothing else to choose apart from crypto.
One of the organizations seeking to help Ukraine is called Come Back Alive. The company has garnered several crypto-based donations which they’ve used to provide Ukraine with artillery units and drone reconnaissance.