The digital currency market has lost its superiority as a result of the ambiguity and escalation of the war between Russia and Ukraine. Following Russia’s invasion of Ukraine, major cryptocurrencies such as Bitcoin and Ethereum have also experienced recent lows.
However, no one anticipated that cryptocurrencies would emerge as a major key variable for people fleeing Ukraine amid the conflict. Yes, in addition to being a valuable asset across borders, digital tokens are assisting the Ukrainian government and other non-governmental organizations (NGOs) in providing better basic services to citizens.
Cryptocurrencies currently have two faces. One is assisting Russia in evading looming US sanctions, while the other is assisting Ukrainians in times of crisis. Unlike in the past, when Russia’s economy suffered as a result of Western sanctions, the country may be able to avoid sanctions this time around, thanks to cryptocurrencies. Fortunately, digital tokens such as Bitcoin and Ethereum are also assisting Ukrainians in surviving Russia’s major blows.
Following the outbreak of the Russia-Ukraine war, the Ukrainian government ordered the suspension of foreign exchange market proceedings and electronic fund transfers beginning in February. When this annihilation struck, some citizens resorted to cryptocurrencies for keeping their lives running.
We’ve also seen the government and some non-governmental organizations (NGOs) collect funds in the form of digital tokens, which are then used to support people and purchase critical supplies. While this is the situation in the war-torn country, cryptocurrencies are being utilized by Ukrainians fleeing the country for keeping their lives afloat in neighboring countries.
Crypto Contributions welcomed by Ukrainian Govt and NGOs
Ukraine’s official Twitter account provided two cryptocurrency wallet addresses, a Bitcoin wallet address, and an Ethereum wallet address, on February 26th, requesting the worldwide population to support the people of Ukraine by contributing digital tokens.
Although some speculated that this was a hoax or that the account had been compromised, higher-ranking officials, which included the Vice Prime Minister and Digital Transformation Minister, retweeted the same to demonstrate otherwise. Furthermore, a representative for Ukraine’s Ministry of Digital Transformation confirmed the authenticity of the tweet.
Since then, many people have begun donating Bitcoin and Ethereum to the wallet. The Ethereum wallet had 7,341 transactions at the time of writing, while the Bitcoin address had 7,873 transactions. Until now, funds totaling US$36 million have been raised from the government along with private wallet addresses.
Digital Tokens as the Final Grip
Regardless of the current crisis, few fintech and payment organizations have declined to permit groups for offering cash support to the Ukrainian military. As a result, the government and non-governmental organizations (NGOs) are resorting to cryptocurrencies. Following the outbreak of the conflict, Patreon, a fundraising platform, halted the donation page “Come Back Alive,” alleging a violation of the company’s policies.
However, raising cryptocurrency funds has become relatively simple. Although the utilization of cryptocurrencies is unclear, it has received a lot of attention in the last week.
On the sidelines, we face threats from scammers. According to one analyst, at least one of the social media posts acquiring donations for Ukraine appears to be a hoax. They copied an NGO’s tweet but changed the Bitcoin address.
Survival of Ukrainians in the Neighboring Countries
Even though the scenario had been ambiguous for some time, Ukrainians did not expect Russia to breach their country overnight. The only thing that Ukrainians are doing in this scenario is fleeing the country.
However, the government has halted transfers of electronic cash, and ATMs have been swamped. Furthermore, all men of fighting age have been barred from crossing the border. However, some of them have identified loopholes and deserted lands to flee war-torn Ukraine.
According to Bitcoin Magazine, which spoke with a Ukrainian who fled to Poland, he is surviving thanks to his savings of Bitcoin. Since joining, he has been employed as the webmaster for an organization named Helios Fund, which pays him in Bitcoin. Fortunately, Bitcoin was the only commodity he could bring with him to Poland.
