Ukrainian in Crypto Cuff Two Over Russia
Ukraine is using crypto in a way that has never been done before: to raise donations for its war effort against Russia.
The ukrainian government has raised $13 million in cryptocurrency following an appeal on social media to donate coins such as bitcoin and ethereum, data from blockchain analysis firm Elliptic shows.
In an age when cash is hard to come by, Ukraine has looked to crypto assets to help it make it through this difficult period. The country was already a crypto friendly nation, ranked fourth globally in 2021 for adopting digital currencies, and its president, Volodymyr Zelensky, has made it easier to use cryptocurrencies by passing regulations aimed at regulating the industry and protecting investors.
Ukraine has also tapped into the power of crypto for some of its more traditional needs such as purchasing non-lethal military equipment, according to Elliptic. In addition to a few high profile donors, the country has had some success with crypto-friendly charities such as Come Back Alive, which accepts donations in crypto and has been able to use them for the purchase of equipment that would not be possible without the donation.
Despite its apparent success, there are still risks involved with using cryptocurrencies for international transfers, including fraud and high transaction fees. And many emerging market countries, especially those with tighter financial controls, have not yet embraced the technology.
One of the most significant developments in crypto in 2021 was the announcement by WikiLeaks that it would be publishing a non-fungible token (NFT) on the blockchain, which allows for unique digital assets to represent ownership of virtual items such as artwork or video game characters. A token based on this NFT has sold for about $6.5m, making it the tenth most expensive NFT ever sold.