Key points to remember
- Many expressed a desire to help Ukraine amid the Russian invasion.
- Although the Department of Defense has created a bank account specifically for foreign currency donations, it is legally unable to accept crypto donations.
- The potential use of Crypto as a vehicle for donations may have seemed clearer in recent weeks.
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Following Russia’s incursions into Ukraine, many have expressed interest in donating to the nation’s defense efforts. However, the Department of Defense is legally prohibited from accepting cryptocurrencies.
Wartime Crypto Donations
It seems that more and more people are becoming aware of the potential use case of digital assets for donations to various efforts or causes.—or military conflicts.
As Ukraine suffers a foreign invasion by Russian military forces, the Ukrainian Ministry of Defense has has received an influx of requests from strangers wishing to donate. Due to “national legislation”, the Ukrainian Ministry of Defense is however unable to accept alternative payment systems such as Bitcoin or PayPal.
That said, the Ministry of Defense has opened a bank account dedicated to foreign currency donations “due to numerous requests from natural and legal persons not resident in Ukraine” who wish to donate. The donations support the Ukrainian Armed Forces, according to the Defense Ministry, in terms of logistical and medical support.
The bank account that would allow foreign donations was opened only after a significant number of requests from people wishing to donate. Those wishing to directly support military units and institutions actively engaged in the conflict with Russia should contact the commanders or leaders of these groups directly.
The crypto market has suffered a severe decline today on the news of the Russian military offensives in Ukraine, and it was trembling for several weeks now in fear of what exactly happened today. Over the past year, crypto donations to Ukrainian non-governmental organizations and volunteer groups increase dramatically, probably also due to escalating concerns about the military conflict with Russia.
The possible benefits that crypto offers for donations have become clearer in recent weeks. Specifically to Ukraine, the issuance of digital fiat currency has been suspended today in Ukraine after the imposition of martial law by President Volodymyr Zelensky.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and several other cryptocurrencies.
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