The Ukrainian minister reiterates that crypto is an “essential tool” in the country’s defense

Since Russia’s invasion of Ukraine began, cryptocurrency has become an important instrument for reaching out to investors to solicit their support in raising funds for the ongoing war effort.

In particular, Ukraine’s Deputy Minister of Digital Transformation, Alex Bornyakov, emphasized in a chirping posted on July 26, that crypto remains crucial to the country’s defensive strategy.

Although the market has experienced some downsides recently, he is convinced that crypto will not disappear.

“Despite ‘bear market crypto has become an important tool for Ukraine’s defense, providing flexibility and speed that literally saved the lives of our soldiers. Every ‘crypto winter’ leads to a ‘crypto spring,’ but the industry is here to stay.”

The war in Ukraine

Following the Russian invasion of Ukraine on February 24, the Ukrainian government used social media to solicit cryptocurrency donations, and since then the Eastern European nation has relied on crypto as a tool to raise and secure funds.

Given that digital currencies have unique advantages over other forms of cross-border payments, mainly the speed and anonymity of transactions compared to the traditional banking system.

As Michael Chobanian, founder of Ukraine’s largest cryptocurrency exchange, KUNA, pointed out in an interview with Bloomberg:

“It takes 10 minutes for a Bitcoin block to close [average confirmation time for a Bitcoin payment]. And it takes about three days to do the same through the banking system.”

Although it is difficult to estimate how much Ukraine has raised through crypto, some sources state that it is well over $100 million, with crypto donations that have been used for various purposes, including emergency supplies, food, water, fuel and military equipment.

The crypto market

Meanwhile, cryptocurrencies have fallen sharply in recent weeks, and donations have lost some value following the fall. Still, this doesn’t seem to be deterring Ukraine’s crypto enthusiasts from seeking to raise funds.

Obolon, Ukraine’s largest independent beer brand plans to sell non-fungible tokens (NFT) to help it distribute free water for humanitarian aid.

The Ukrainian government also continues to pursue crypto-funding opportunities with artists to create NFTs. The NFTs are to be used to secure funds for the country’s defense and reconstruction process.

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