Bitcoin donations have poured into the Ukrainian military after Russia attacked the nation with heavy artillery on Thursday, 24th of February.
Elliptic blockchain analytics company reported about Ukrainian NGOs and volunteer groups using cryptocurrency to crowdfund Ukraine’s armed forces. In 12 hours, almost $400,000 in Bitcoin was donated to ‘Come Back Alive,’ a Ukrainian non-governmental organization that supports soldiers in the war against Russia. After one day, the amount reached $4 million.
The funds from crypto provide the Ukrainian army with military equipment, medical supplies, drones, and the development of facial recognition app to identify Russian spies.
Cryptocurrency a Powerful Tool for Crowdfunding War
Cryptocurrency fundings in Ukraine are still minor, with most fundraising campaigns held with traditional payment methods. Yet it’s one of the best methods as crypto provides more fluid and faster overseas transactions. In some cases, financial institutions can close accounts linked to fundraising, which could never happen with crypto, according to Elliptic.
“Some of the Ukrainian volunteer groups and NGOs accepting crypto donations have very close links to the Ukrainian government - and this adds to a trend of nation states turning to cryptoassets as a means of raising funds.”
On the Flipside
Last week Ukraine officially legalized cryptocurrency, and Ukraine has been one of the top five countries in the number of crypto traders.