Crypto

another reason why crypto should exist — Retail Technology Innovation Hub

The Russian invasion of Ukraine posed a series of challenges and dilemmas for the world. However, the efficiency of solutions is best measured during times of adversity.

In particular, cryptocurrency has shown itself to be more than just a casino payment method or a way to stick it to the central bankers. In this current conflict, it is proving that it is useful to have direct access via the blockchain.

In March, over $136 million worth of donations was reportedly received via cryptocurrency wallets. It is the first time in the community’s history that such a substantial contribution has been made to a humanitarian cause.

Small and large donations continue to pour into the wallets on a regular basis. This article will examine how and why Ukraine might gain so much from cryptocurrency, as well as how this sequence of events can serve further crypto advocacy. 

Why cryptocurrency donations?

Cryptocurrency is a completely digital form of wealth which is immune to monitoring and centralised authority. Unlike banks, nothing, let alone an invading army, can modify, halt, or reverse the transaction or ownership of crypto tokens.

As a result, transactions are affordable, anonymous, quick, and straightforward. That is why it was considered the most appropriate means of soliciting funds from the outside world during such a hostile period. 

Furthermore, Ukraine has been a backer of cryptocurrency from its beginning. According to a reputed blockchain research firm, Chainanalyis, Ukraine ranks fourth in crypto adoption. In 2021, it legalised Bitcoin as well as other cryptocurrencies.

As the government and administration are already technologically equipped to handle cryptocurrency, they could take the liberty of tweeting wallet addresses to accept contributions directly instead of the more traditional methods.

Another reason for shifting to cryptocurrency contributions was rejection from Patreon.

It halted a crowdfunding effort organised by a Ukrainian NGO called ‘Come Back Alive’. Claiming that the donations were intended to be used to purchase military equipment, which violated their guidelines.

It is the point at which people everywhere discovered the limits of conventional monetary transactions due to red tape and bureaucracy and saw what cryptocurrencies could offer as their alternative. 

According to an interview of Nadya Tolokonnikova with New York Times, a spokesperson for Ukraine DAO, an organisation that coordinates decentralised humanitarian aid for Ukrainians, “blockchain enables us to expand our efforts in ways that were previously impossible. The old ways of raising money sometimes are really slow and just clumsy.”

Not only Bitcoin

The Ukrainian fundraising organisations have not limited themselves only to Bitcoin. They have opened a variety of token wallets for contributions.

Solana

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