The solidarity being shown by the crypto community is a testament to the role digital currencies have to play in the future of money, where the nascent asset class can be recognized as a force for good for humanity.
The Government of Ukraine has been fighting the invasion from Russia since February 24th and donations from the cryptocurrency ecosystem have topped $55.7 million. According to data from Elliptic, Ethereum (ETH) comes off as the most donated digital currency, followed by Bitcoin (BTC).
The ongoing Russia Ukrainian war helped the latter to get creative by soliciting donations in cryptocurrency when its official Twitter account posted a BTC and an ETH address over the past weekend. Since the addresses were shared, the government has been more flexible, constantly expanding the digital assets it accepts to include Solana (SOL), Polkadot (DOT), Dogecoin (DOGE), and even Non-Fungible Tokens (NFTs).
Per the Elliptic report, the total cryptocurrency donations to the Ukrainian government have topped 105,000 with some going to the Come Back Alive foundation, a not-for-profit organization helping the Ukrainian military.
Per the data provided, Bitcoin accounts for a total of 31.2% of the donations accrued thus far, with the Ethereum tally coming in at 33.7%. Stablecoins contributions account for 17% while Polkadot accounts for 14.5% of all contributions with other digital assets pegged at 3.6% respectively.
“Cryptocurrency is particularly suited to international fundraising because it doesn’t respect national boundaries and it’s censorship-resistant – there is no central authority that can block transactions, for example in response to sanctions,” said Elliptic’s chief scientist, Tom Robinson.
The hassles that donors will face with sending digital currencies to support both the Ukrainian government and the humanitarian efforts ongoing in Ukraine will be quite minimal, seeing the assets operate in a decentralized manner without the need for approval from any centralized government or financial institution.
The solidarity being shown by the crypto community is a testament to the role digital currencies have to play in the future of money, where the nascent asset class can be recognized as a force for good for humanity.
Cryptocurrency Donations Pales Compared to Fiat
While the digital currency ecosystem has come through for Ukraine, the donations made thus far are far below the funding that is trickling in through mainstream or traditional financial sources. A number of fintech companies including Paypal Holdings Inc (NASDAQ: PYPL), as well as payment giants Mastercard Inc (NYSE: MA), and Visa Inc (NYSE: V) have also donated to support Ukraine’s humanitarian efforts or support the government in its fight in general.
Beyond private companies, world governments are sending in billions in aid packages to help Ukraine cushion the economic impacts of this avoidable war. According to a Reuters report, the United States government has sent in $350 million in aid packages to Ukraine after approval was received from Congress. The Biden administration is now pushing for a $10 billion funding immediate emergency aid to bolster humanitarian supplies, security forces, and the economies in Ukraine and its central European partners.
In all, the Ukrainian government has enjoyed enough solidarity and help from both the mainstream financial ecosystem as well as the nascent crypto world, a gesture that should get cryptocurrencies more recognition across the board.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
