in Crypto News
As the Russian invasion ramps up, the crypto community continues to support the Ukrainian government and its citizens. Total crypto donations to the eastern European country have now exceeded $50 million, with the money coming from an estimated 89,000 donors. Private organizations have also been raising money. Most notably, UkraineDAO raised $6.75 million via its sale of a Ukrainian flag NFT.
All of the proceeds from the sale of the NFT will be donated to the Come Back Alive organization, which is buying food and other supplies for Ukrainian citizens and soldiers. Just like the Canadian Truckers on GoFundMe, Come Back Alive was previously deplatformed from Patreon. Thankfully, after being canceled by our big tech overlords, these causes were able to use crypto instead. It’s becoming clear that when the financial system denies people banking access, crypto can be a solution.
Blockchain is an amazing technology because it lets anyone in the world donate without the hassle, expense, and risk of censorship that are the trade-offs of wire transfers. Crypto transactions can take seconds, minutes, or at most an hour, depending on the blockchain. The fees are low and transfers work even if the traditional financial system is down.
The donations started with Bitcoin and Ethereum, but Ukrainian officials have been expanding the list of coins that they’re accepting. Polkadot founder Gavin Wood recently gave $5 million worth of DOT, and officials have just announced that they’re going to start accepting DOGE coin donations as well.
According to Mykhailo Fedorov, the Minister for the Digital Transformation of Ukraine, “Now even memes can support our army and save lives from Russian invaders.”
How are the donations being spent? Michael Chobanian, the founder of the Ukrainian exchange Kuna, has stated, “We are sending money to buy petrol, to buy food and water for the people who are evacuating. We are sending some money to the local military personnel who can buy some supplies locally.” According to Chobanian, Ukraine has been able to buy supplies in Europe from retailers who accept cryptocurrency.
Not everyone is happy with the crypto situation though. For example, Jerome Powell has found a way to ignore the donations to Ukraine while focusing on Russians using Bitcoin to avoid sanctions. According to Powell, America needs more crypto regulations to ensure that all sanctions get enforced. Apparently, Russian citizens using crypto to protect their savings is a criminal misdeed and must be stopped. Coincidentally, Powell’s previous focus on reducing inflation seems to have taken a hit, and he has warned Americans that Russian aggression in the Ukraine will create the risk of higher inflation.
Some elements of the EU are also concerned about money that the federation doesn’t control. France’s finance minister, Bruno Le Maire, has claimed that the EU is, “Taking action, especially on cryptocurrencies or crypto assets which should not be used to circumvent financial sanctions decided by 27 countries of the European Union.”
Once again, financial regulators are ignoring all the benefits and focusing on what they deem to be “bad.” That’s typical, and we are certainly used to it in the cryptocurrency community. Hopefully, the narrative will change one day, and the world will start to realize that crypto does a lot more good than harm. Only yesterday, the Swiss city of Lugano became the first European city to make BTC and USDT legal tender.
Also, the donations to Ukraine are proving that the crypto community can make a positive change, even if those in charge are unwilling to admit it. Perhaps a lesson that leaders all over the world can learn from the past month is to listen to the will of the people, instead of focusing their efforts on trying to shut them down with propaganda, censorship and violence.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.