June 16, 2024

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Every Bitcoin Helps: Why Ukraine Is Asking for Crypto Donations | Cryptocurrency

hThe e may be influenced by the term but you can describe Dylan Schultz as a crypto bro. He runs Lavender.Five, a cryptographic verification service that certifies transactions on the blockchain (imagine an unregulated branch of the Securities and Exchange Commission).

On February 25, he released a Call To his 1,700 followers on Twitter, “We will match any donation made to a charity to support Ukraine, up to a total of $1,000.” The next day, Schultz Spreading the fruits of his initiative; 0.028 bitcoin, which equates to a total donation of about $1,100, was sent to a crypto wallet operated by a Ukrainian military NGO called Come Back Alive. He is a small part of the countless other cryptocurrency holders around the world who have raced to support the Ukrainians in the face of an invading force. Reports claim that more than $30 million in cryptocurrency It has been moved to the country since the start of the war. Has philanthropy finally become decentralized?

“I decided early on that Lavender.Five was going to use their platform to make a positive difference, no matter how small,” Schultz says. “Crypto in nature is all over the world. To donate traditional currency often requires intermediaries. You cannot donate US dollars directly, you first need to convert it in some way, or find an intermediary. … Cryptocurrency solves this by simplifying the process. If you have the address of the institution. Charity, you can simply enter the address, enter the amount to be donated, and press send.

Ukraine, like many former Soviet countries, fight corruption and a severe lack of international funding since gaining independence in 1991. So this is probably why the Ukrainian government has taken the unusual step of tweeting crypto-wallet codes for global finance through both Bitcoin and Ethereum – the two most popular digital currencies – of accounts. official. He wrote, “Stand with the people of Ukraine now by accepting donations in cryptocurrency.” Mikhailo FedorovUkrainian Deputy Prime Minister, on February 26. Nonprofits and local businesses in the beleaguered country have reflected the government’s demand. Kyiv Independent, an English-language newspaper published in the capital, Accepts favoritism through bitcoin.

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Come Back Alive, the NGO that Schultz contributed to, was previously active on Patreon — processing donations in traditional currency — before it was terminated from the platform because it violated an existing moratorium on military fundraising. Naturally, the company has found a second life thanks to a “crypto group” called UkraineDAO that brings together decentralized aid to a variety of Ukrainian organizations. With the country gradually being drawn into brutal urban warfare, it probably makes sense for the population to demand untraceable coins – especially since donations can be anonymous and thus avoid any retaliation from the Russian state.

“Blockchain technology allows us to scale our efforts in a way that was not possible for us before,” said Nadia Tolkonikova, a Ukrainian spokesperson for DAO. In an interview with the New York Times,. “The old ways of raising money are sometimes too slow and clumsy.”

For even the most ardent crypto enthusiasts, the crisis in Ukraine is a perfect summation of the reasons why they believe that global economic dominance needs to be dismantled. The Ukrainian people need help, and they argue that Bitcoin’s ability to avoid red tape is the best way to provide immediate service to the vulnerable population. “It’s the cheapest, fastest and safest way to transact,” says Artemis, who declined to give his real name but said he was from Canada and donated $280 of bitcoin to Come Back Alive. “They can store it safely without any fear of the invading force stealing it, or the collapse of the banking system due to war.”

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However, donors still need to do their due diligence to avoid potential fraud, particularly in a chaotic active war zone. No one should trust a stray crypto wallet floating around on social media without confirming the details. Especially when there are organizations like The Giving Block, a philanthropic trustee who opens blockchain pathways for nonprofits, which requires a vetting process to be featured on the platform. Even in the crypto wild west, it is possible for recipients to know that their handouts are going to the right place – even though all Ukrainian groups currently accepting crypto donations have opened themselves up to this kind of transparency.

There is also plenty of evidence that the cryptocurrency revolution could threaten the Ukrainian domestic front. Foreign policy experts warn that the Russian economy could become Increasing dependence on blockchain The crippling sanctions wreaked havoc in Moscow. ruble Equal to less than one cent After fainting by 30% after the United States and Europe cut off Russian banks for Swift. Crypto is more resistant to punitive financial assault, and this provides an escape route for a country completely cut off from civilian banking.

Most likely it is already happening. we know Russia It is already developing its own digital currency, the digital ruble, which it will use in global trade. Sanctions intended to harm Putin will only harm the Russian people. What is certain is that Putin had already thought about this before the conflict with Ukraine and had a plan that would possibly include crypto,” says Mark Bosa, global brand and business director for HOKK Finance.

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The war effort, on both sides, may be funded in the darker black of the blockchain. Cryptocurrency is often simultaneously a force for good and a force for evil, but the risks of this split have never been this high. For his part, Schultz intends to continue supporting the Ukrainians with his symbols. “Ukraine didn’t want that, and it’s fighting the battle alone,” she says. “I wanted to help however I could, by reaching out to as many as possible.”