Since the invasion of Ukraine by Russia, the cryptocurrency community has been active in supporting the Ukrainian government financially. More than $100M worth of crypto aid has been sent to Ukraine.
The vice prime minister of Ukraine, Mykhailo Fedorov, has thanked the crypto community for donating cryptocurrencies, noting that it has gone a long way in helping the country’s military forces.
Ukraine’s vice prime minister thanks the crypto community
“Crypto for good. Aid for Ukraine continues its work for the frontline heroes: 200 sets of ballistic plates of 4 class for bulletproof vests have been sent. The better equipped soldiers – the sooner day of Ukrainian victory,” the tweet said.
The Ukrainian government set up Aid for Ukraine just a few days after the war began. Aid for Ukraine is a decentralized autonomous organization (DAO) created in partnership with the Everstake blockchain service and the FTX exchange. The platform seeks to collect cryptocurrencies to buy military gear and equipment.
The DAO was created after Fedorov posted official cryptocurrency wallets that can be used to facilitate donations to the Ukrainian government. Aid for Ukraine is now an official website that accepts donations in nine cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Tether (USDT), Solana (SOL) and Dogecoin (DOGE).
Half of the $100M donated to the Ukrainian government has already been spent to buy bulletproof vests, food, helmets, and medical supplies. According to the Financial Times, the Ukrainian government chose to use crypto donations for non-lethal purchases to ensure they do not deter future donors.
Role of crypto in the Russia-Ukraine crisis
Cryptocurrencies have supplemented the financial aid flowing into Ukraine. However, there has been concern over Russia’s increased use of cryptocurrencies. During the onset of the war, the Russian ruble tumbled to all-time lows, triggering increased use of cryptocurrencies.
There have been calls for cryptocurrency exchange platforms to halt their services in Russia. However, some exchanges have opposed this move and have said that such action would require legal authorization. However, regulated exchanges have already halted their services to sanctioned individuals and institutions.
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