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Gift and purchase with cryptomoney is not a new concept. However, the continuation of the conflict involving Ukraine and Russia underscored the benefits of the adoption of digital currencies for military assistance.
During the Russian onslaught against Ukraine in February 2022, the Ukrainian government used the Internet to solicit donations of cryptocurrencies. There was a huge surge of support, with over 100,000 people giving money to Ukrainian soldiers.
Military assistance for the use of cryptocurrencies is not limited to monetary gifts. Ukraine has reportedly been utilizing (1) cryptocurrency to buy helmets, bulletproof vests, optical sights, and other vital pieces of military equipment, as reported by Alex Bornyakov, the nation's deputy digital minister.
Bornyakov claims that more than 60% of military equipment providers are adopting cryptography, giving the government an important financial advantage that the war continues.
Crypto in every kind of catastrophe.
Due to its central location in Ukraine, the capital of Kiev had to win from cryptonet development after the invasion began. A year ago, Ukraine ranked fourth overall in the adoption of Bitcoin, according to a market studies company.
As of September 2021, Ukraine will officially recognize cryptocurrency.
There are some advantages to using digital currency, such as quicker transactions. The Minister of Digital Policy said that normal financial systems would have been too slow and that the Ukrainian army needed emergency assistance. However, crypto would make transactions instant and secure.
The Ukrainian government rapidly understood that cryptocurrency donations were the fastest and easiest way to handle the rush of money that had begun coming in from around the world (almost $55 million in a week back in March).
In addition, binance, the nation's largest cryptocurrency exchange, has developed a "Ukraine Emergency Assistance Fund," a crypto-front-page fundraiser that accepts coin donations. And they have contributed $10 million to the Ukrainian government.
Using Crypto as a Quicker and More Secure Alternative
Also, the decentralized structure of cryptocurrency payments is an advantage for making large military purchases. Cryptographic payments are instantaneous and decentralized, in contrast to those handled by traditional financial institutions such as banks.
When asked the question, Bornyakov said:
Surprisingly, close to 60% of our suppliers could accept the cryptocurrency, which allowed us to buy the necessities quickly and easily.
The Ukrainian government has said that some of the donations came from Russians who wanted to support the defense efforts of Ukraine, a claim made possible by the transparency of blockchain technology.
It did not go unnoticed that Ukraine used successful cryptocurrency for military assistance. The country has also launched a program called the Ukraine Crypto Relief Fund.
Kuna, a cryptocurrency exchange office based in Ukraine, and everstake, a blockchain company also based in Ukraine, are behind cfak, with support from Ukraine's Ministry for Digital Transformation.
1/3 of total donations were from cfak. Therefore it was successful. Bornyakov praised the work, noting how quickly and easily the money could be made available through cryptocurrency.
Bornyakov, spokesman for the de facto crypto government, says that Ukraine has received approximately 100 million dollars in crypto contributions.
Over $60 million of the $100 million was invested in the main fund managed by the Ukrainian crypto-exchange Kuna, the official revealed in an emergency live briefing.
