Ukraine’s Digital Transformation Minister Says Crypto Remains Essential To Country’s Defense Despite Crypto Winter

Alex Bornyakov reaffirms Ukraine’s belief in crypto.

In a tweet on Tuesday, Ukraine’s Deputy Minister of Digital Transformation, Alex Bornyakov, maintains that crypto remains a key part of Ukraine’s defense strategy despite the extended market downturn, adding that he believes crypto is here to stay.

Despite the ‘bear market’ crypto has become an essential tool of Ukraine’s defence, providing flexibility and speed that literally saved our soldiers’ lives. Every ‘crypto winter’ leads to a ‘crypto spring’, but the industry is here to stay,” Bornyakov wrote in the tweet today.

Despite the “bear market” crypto has become an essential tool of Ukraine's defence, providing flexibility and speed that literally saved our soldiers' lives. Every “crypto winter” leads to a “crypto spring”, but the industry is here to stay.

— Alex Bornyakov (@abornyakov) July 26, 2022

It is worth noting that since Putin’s Russia came bearing down on Ukraine’s borders, the East European nation has leaned to crypto as a means of raising funds due to its unique advantages over other forms of cross-border payments. Michael Chobanian, the founder of Ukraine’s largest exchange, KUNA, highlighted this while speaking with Bloomberg, noting that while a transaction on the blockchain took minutes, it took about three days for international payments to be processed through the traditional banking system.

While it is difficult to estimate how much Ukraine has raised through crypto, several sources put the figure above $100 million. Notably, the country raised about $10 million in just four days after the war started. In addition, Bornyakov had earlier revealed that funds raised from crypto had provided key emergency equipment needed for the early days of the war, and food, fuel, and bulletproof vests for soldiers.

However, Ukraine’s crypto stash has not been unaffected by the extended crypto market downturn. As The Kyiv Independent reported on Monday, charities receiving crypto donations have also seen a decline in the frequency of donations.

Despite these hurdles in the wake of the crypto winter, Ukraine remains undeterred. The Ukraine government continues to pursue crypto fundraising initiatives as it has now called on artists to create NFTs to raise funds for the country’s defense and rebuilding process.

“We’re using the latest technologies to bring Ukraine closer to victory,” the Ukrainian Minister of Digital Transformation Mykhailo Fedorov reportedly said.

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