How Ukraine is using digital currency to defend itself against Russia in the face of adversity

  How Ukraine is using digital currency to defend itself against Russia in the face of adversity

    The Ukrainian military has received Bitcoin and other cryptocurrency funding from around the world to support their war with Russia, and the country has developed a thriving digital currency market and is now using its experience in the field to enhance its military and technological capabilities.

    In the United StatesOil PriceIn a report posted on the website, author Felicity Bradstock said Elliptic reports that more than $570,000 in cryptocurrency has gone to volunteer organizations and NGOs in Ukraine to help provide military equipment, medical supplies and drones to the military.

    In addition, these donations have supported the development of facial recognition applications to determine if someone is a Russian spy, as cryptocurrencies can easily be transferred anonymously across borders in the absence of strict vetting procedures for cryptocurrency flows.

    Tom Robinson, chief scientist at Elliptic, said that "cryptocurrencies are increasingly used and are a source of funding for large-scale wars with the acquiescence of governments," including Ukraine, and that "cryptocurrencies are particularly well suited for international fundraising because they are not subject to censorship and national border laws, and There is no central agency that can block transactions, and this is also true in the case of sanctions."

    Given that President Vladimir Zelensky has allowed the Central Bank to issue digital currencies, which are currently very popular in Ukraine, the Central Bank is also working with the government to legalize and standardize them and make it easier for businesses to use them for transactions.

    Among the cryptocurrency fundraisers is an organization called Come Back Alive, which was founded in 2014 to provide military equipment, training services and medical supplies. The foundation began accepting cryptocurrency donations in 2018 and received about $200,000 in the second half of 2021.

    The Ukrainian Cyber Alliance (UCA) has received $100,000 in funding in recent years to support cyber attacks against the Russian military, and the Myrotvorets Center, which allegedly has close ties to the Ukrainian government, is publishing personal information related to Ukraine's enemies.

    Ukraine could become a superpower in the crypto space given the current flow of cryptocurrencies, as well as the fact that the government is allowing central banks to create cryptocurrencies, lower taxes on them, and adopt simple written transactions and new payment methods in 2021. All of these measures will encourage more individuals and companies to enter the cryptocurrency market and will also strengthen Ukraine's position as a center of innovation and development in Eastern Europe. Ukraine is committed to assembling a large number of developers and programmers to support the country's digital transformation.

    Deputy Prime Minister and Minister of Digital Transformation of Ukraine Mikhailo Fyodorov said that the initiative of legalization and regulation in the field of cryptocurrencies will promote the development of new industries, attract transparent investments and enhance the image of Ukraine as a high-tech country.

 Cryptocurrencies become more important to the Ukrainian economy in the months following the threat of a Russian invasion

Economic Weapons

    Ukraine ranks fourth in the global cryptocurrency adoption index, according to criteria established by data analytics firm Chain Analysis, with $8 billion worth of cryptocurrencies in circulation in the country, equivalent to $150 million per day, and many Ukrainians have turned to investing in digital currencies, especially in the absence of strong alternatives in the stock market.

  Ukraine's Ministry of Digital is very confident about the country's position in the international cryptocurrency market, setting a goal to increase the share of technology in the gross national product from 5% to 10% and expecting the number of employees in the technology sector to double to 500,000.

    In addition, new companies are appearing on the crypto market in Ukraine. The famous cryptocurrency exchange Binance is preparing to launch a new cryptocurrency payment card in Ukraine in order to be in a dominant position.

    Kirill Komyakov, the company's general director in Ukraine, said that the Coin Security Card is not yet available to Ukrainian users, but the company is working to launch it, saying that it is one of the company's top priorities for 2022.

    Over the past year, thanks to the recent legalization and regulation in the cryptocurrency space, Ukraine has been working hard to establish itself as a cryptocurrency hub. The country has developed a cadre of technology professionals and hopes to establish itself as a cryptocurrency hub in Europe in the coming years.

    Digital currencies have become increasingly important to the Ukrainian economy in recent months, as the threat of a Russian invasion has prompted individuals and companies around the world to send money to volunteer and government-related groups to help them prepare, in what could be the first example of using digital currencies to support the war effort and make them an integral part of the national economy.