Around 60% of the suppliers providing weapons to Ukraine in its defense against Russia are accepting cryptocurrencies as payment. During the Russian invasion of Ukraine in 2022, the Ukrainian government turned to cryptocurrencies for help, and more than 100,000 people have donated funds in bitcoin, ethereum, and other cryptocurrencies. Ukraine’s deputy digital minister, Alex Bornyakov, stated that digital assets are preferred because they are more expedient than traditional currencies. The use of cryptocurrencies has provided a faster and more efficient way of transferring funds to Ukraine compared to traditional financial services.
Donations have come through programs such as the Crypto Fund Air For Ukraine, which Bornyakov called an “absolute success.” This initiative, powered by Ukraine-based crypto platform Kuna and blockchain company Everstake, has contributed one-third of the total donated amount. Ukraine has used these funds to purchase combat essentials such as helmets, bulletproof vests, and medical kits from suppliers who accept crypto payments.
The Russo-Ukrainian war has demonstrated the potential of cryptocurrencies as a viable and more resilient alternative to traditional financial systems. Other cryptocurrencies accepted by Ukraine include Cardano, Solana, and Polkadot.