Experts tell how cryptocurrency helps Ukraine in the war with Russia

Despite skepticism and misconceptions that cryptocurrency is just a toy for rich elites, digital assets have proven to be a significant help to Ukraine in its fight against Russian aggression. Experts debunked the myths associated with cryptocurrency and explained how it is now saving Ukrainians in difficult times.

Myth 1: Traditional money transfers are more reliable than cryptocurrency transfers

When the full-scale Russian invasion began on February 24, 2022, the Ukrainian government tweeted a request for cryptocurrency donations for the needs of the Armed Forces. So far, more than $ 100 million in donations in various cryptocurrencies have been collected. Politicians and society have realized the value of blockchain as a safe place to store money. It doesn’t matter whether ATMs are working or whether banking websites are being hacked, the blockchain has provided support and stopped the destruction of the Ukrainian economy.

Myth 2. Cryptocurrency is an enemy of the state

BTC, ETH and other cryptocurrency donations have already turned into real weapons, ammunition for the Armed Forces, food and medicine for our defenders and civilians. According to a report by the Congressional Research Service, crypto donations now account for about 1% of Ukraine’s annual pre-war defense budget.

Myth 3. Russian oligarchs will be able to transfer their multibillion-dollar savings into cryptocurrency

Contrary to stereotypes, Russia will not be able to convert fiat into cryptocurrency to circumvent the sanctions imposed by the US and EU. There is not enough liquidity in the market to convert fiat into cryptocurrency on the scale required by oligarchs. That is, if an oligarch tries to convert $ 1 billion into BTC or ETH, he will fail.

Myth 4. We will have to start from scratch

Yes and no. The government of Ukraine needs security and predictability in financial transactions, so the systems on which the domestic financial market is built will remain familiar. However, politicians do not deny that they will pay much more attention to blockchain technology, as its implementation can help Ukraine’s financial infrastructure to recover the economy much faster than skeptics currently assume.

Earlier, we reported that according to a study by the analytical company Merchant Machine, Ukraine is among the top three countries in the world that most actively use cryptocurrencies. The rating is headed by the United States and the United Kingdom.