The notion of using cryptocurrency for contributions and purchases is not new. Nonetheless, the recent crisis between Ukraine and Russia has shown the benefits of using digital currency for military help.
In February 2022, as Russia began its invasion of Ukraine, the Ukrainian government resorted to social media to collect contributions in bitcoin, Ethereum, stablecoin, and other cryptocurrencies.
More than 100,000 individuals contributed to the Ukrainian military effort, which was met with a resounding reaction.
The use of cryptocurrencies for military assistance is not limited to contributions alone. According to the deputy digital minister of Ukraine, helmets, bulletproof vests, optical sights, and other types of military equipment have been purchased using cryptocurrencies.
Almost sixty percent of military gear suppliers, according to Bornyakov, are able to take cryptocurrencies, which is very favourable for the government as the fight rages on.
After the invasion, the Ukrainian capital of Kyiv was in a favourable position to profit from the rise of crypto networks. a market research organization ranked Ukraine fourth globally for cryptocurrency adoption.
Faster transaction times are one benefit of utilizing the digital currency for these kinds of buys. The minister of digital affairs argued that regular finance channels would have taken too long, but the Ukrainian military needs assistance quickly. Nevertheless, with crypto, the transactions may be conducted swiftly and effectively.
When overseas contributions poured in—nearly $55 million in a single week in March—the Ukrainian government rapidly learned that cryptocurrency donations were the quickest and most efficient method to manage the surge of cash.
In addition, Binance, the biggest cryptocurrency exchange in the world, has developed the “Ukraine Emergency Relief Fund,” a crypto-first crowdfunding platform that takes crypto contributions with ease. In addition, they handed the Ukrainian government an additional $10 million.
The decentralized nature of cryptocurrency payments is a further benefit of adopting crypto for military purchases. In contrast to conventional financial systems, which rely on middlemen such as banks and payment processors, crypto payments may be processed quickly and without delay.
Bornyakov said: “We were able to quickly arrange the purchase of important things through cryptocurrency, and what’s even more surprising is that around 60 percent of our suppliers were able to take cryptocurrency, something I did not anticipate.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.