Are Cryptocurrencies the Final Hold for Ukrainians Escaping War?

Ukrainian government and NGOs are collecting cryptocurrencies to help the people in the disaster

Due to the uncertainty and intensifying war situation between Russia and Ukraine, the digital currency market has lost its dominance. Major cryptocurrencies like Bitcoin and Ethereum have also hit recent lows after Russia invaded Ukraine. But no one thought that cryptocurrencies might emerge as the major key variable for people leaving Ukraine amidst the war. Yes, besides being an indispensable asset across the borders, digital tokens are also helping the Ukrainian government and other NGOs provide better basic facilities to citizens.

At this point, cryptocurrencies have two faces. One is helping Russia evade the threatening US sanctions and the other is aiding Ukrainians at the time of crisis. Unlike the past times when Russia's economy suffered because of the Western embargo, this time around, the country might escape the sanctions, thanks to cryptocurrencies. Fortunately, digital tokens like Bitcoin and Ethereum are also helping Ukrainians survive the major blows from Russia. After the Russia-Ukraine war broke out, the Ukraine government has ordered the suspension of foreign exchange market transactions and electronic find transfers from February. When this apocalypse hit the citizens, some of them have turned to cryptocurrencies to keep their life running. We also experience the government and some NGOs collecting funds in form of digital tokens, which are used to support people and buy critical supplies. While this is the scenario in the war-destroyed country, Ukrainians escaping the nation are also using cryptocurrencies to keep their life afloat in the neighboring places.

Ukrainian Govt and NGOs Accept Cryptocurrency Donations

On February 26, Ukraine's official Twitter account shared two cryptocurrency wallet addresses, a Bitcoin and Ethereum wallet address, asking the global population to stand with the people of Ukraine by donating digital tokens. Although people initially thought that this might be a hoax or the account could've been compromised, the higher officials including Vice Prime Minister and Minister of Digital Transformation, reshared the Tweet to prove otherwise. Besides, a spokesperson of Ukraine's ministry of digital transformation confirmed that the tweet is genuine.

Since then, many people have started sending Bitcoin and Ethereum donations to the wallet. At the time of writing, the Ethereum wallet has recorded 7,341 transactions while the Bitcoin address registered 7,873 transactions. So far, a total of US$36 million worth of funds have been collected from the government and private wallet addresses.

Digital Tokens as the Last Hold

Despite the ongoing crisis, some fintech and payment companies have refused to allow groups from supporting the Ukrainian military through cash funds. As a result, the government and NGOs are turning to cryptocurrencies. After the conflict broke out, Patreon, a fundraising platform has suspended the donation page "Come Back Alive", citing that it has violated the company's policies.

But raising cryptocurrency funds has become comparatively easy. Although the usage of donated cryptocurrencies is not clarified, it has gained a lot of attention over the past week.

On the sidelines, we are also facing threats from scammers. According to an analyst, at least one of the social media posts collecting funds for Ukraine seems to be fake. Thye have copied the tweet of an NGO but swapped the Bitcoin address.

How is Ukrainians Surviving in Neighboring Nations?

Even though the situation was uncertain for a while, Ukrainians didn't expect Russia to invade their country overnight. In this scenario, the only thing that Ukrainians are doing is escaping from the country. However, the government has suspended electronic cash transfers and ATMs have been overrun. Besides, the borders have also been closed for all men of the fighting age. But some of them have found loopholes and deserted lands to escape the war-haunted Ukraine.

As reported by Bitcoin Magazine that got in direct touch with a Ukrainian who escaped to Poland, he is making the ends meet, thanks to his Bitcoin savings. He has been working as the webmaster for a company called Helios Fund, which paid him in Bitcoin since he joined. Fortunately, that was the only thing he could bring with him when he arrived in Poland.