Ukraine Government Supports Crypto Use For Military Activities

Alex Bornyakov, The Deputy Minister of Digital Transformation, said Ukraine is definitely committed to cryptocurrencies.

He stated that crypto donations had proven to be strategic, as they had helped Ukraine’s efforts in defending itself against the invasion of Russia.

Crypto donations

On July 26th, the Deputy Minister issued a statement in which he asserted that the role cryptocurrencies had played in Ukraine’s war efforts against Russia was a strategic one.

Media reports had indicated that despite the turmoil happening in the crypto market, Ukraine was still receiving crypto donations for supporting the humanitarian as well as the military efforts of the country.

Bornyakov made the statement in response to these reports. Ukraine had first begun accepting crypto donations earlier this year, after Russia had invaded the country on February 24th.

At that time, the government of Ukraine had shared Bitcoin, Tether, and Ethereum wallet addresses that could be used for making donations to assist in the war efforts of the country against Russia.

The government’s acceptance of crypto donations had been a major win for the crypto industry, but it was not very surprising.

This is because statistics show that Ukraine is one of the leading countries that have the highest level of crypto adoption, even before the war happened.

Funds raised

Thanks to crypto donations, the government of Ukraine was able to raise a whopping $60 million or more. These donations were received in the form of different cryptocurrencies and tokens.

The most popular names were Bitcoin (BTC), Solana (SOL), Ether (ETH), the USDC stablecoin from Circle, Tether (USDT) and Polkadot (DOT).

It should also be noted that donations have also been made to Ukraine in the form of non-fungible tokens (NFTs) to support the military activities of the country.

This has prompted the Ukrainian government to launch a virtual museum called ‘Meta History: Museum of War’, which permits artists for showcasing the war between the two countries.

It will be possible to mint these moments as NFTs that will then be sold to the highest bidder.

No bear market impact

Bornyakov was also positive about the crypto market’s future, as he said that bearish sentiment had not stopped the use of these digital currencies to save the lives of soldiers in Ukraine.

He also asserted that ‘crypto spring’ was coming, but did not make any definite predictions about prices in the future. However, he did add that cryptocurrencies were here to stay.

In the last couple of months, the crypto market has seen massive losses. The crypto market cap has declined by two-thirds since the end of last year.

In November 2021, it had surpassed the $3 trillion mark, but is now struggling to maintain $1 trillion. There was a brief rally in the market in the previous week.

Many investors had assumed that it marked the end of the crypto winter and prices would now reverse, but cryptocurrencies had not been able to maintain their gains and the market was down once more.