A recent report from blockchain security firm, Elliptic revealed that crypto donations received by volunteer groups in Ukraine totaled $570,000 in 2021.
According to the report, these crypto donations were made to support Ukraine in the ongoing war against its neighbor, Russia.
Over the years, several volunteer groups and non-governmental organizations have been set up in Ukraine to receive donations that will be used to support the country’s conflict with Russia. Although donations are majorly in fiat form, there have been several hundred thousand dollars donated in the form of crypto assets.
Crypto Donations Surged 900% in 2021
In 2021, volunteer organizations recorded a massive increase in the amount of crypto donations received. With donations reaching $570,000 last year, it represents a 900% increase, compared to 2020 when only $6,000 was received as crypto donations.
Come Back Alive is one of the Ukraine-based volunteer organizations that recorded a surge in crypto donations. The report stated that the group received close to $200,000 worth of bitcoins in the past year.
Also mentioned in the report is the Ukrainian Cyber Alliance group which is said to have received $100,000 donations in the form of BTC, LTC, Ether and so on in 2021.
Other Ukrainian groups mentioned are the Belarussian hacktivist which raised $84,000 in Bitcoin donations over the past six months and the Myrotvorets group which have received $268,000 through more than 100 BTC donations.
Crypto Eliminates Payment Barriers
One major edge that cryptocurrencies have over fiat currencies is their decentralized nature. This makes it possible for international donations (crypto) to go into Ukraine without any obstruction from financial institutions that are said to be preventing payments to these groups.
Taking advantage of cryptocurrencies as an alternative means of generating capital, many NGOs around the world have begun accepting crypto donations. Last year, SOS Kinderdorf, a subsidiary of the Swiss-based non-governmental organization SOS Children’s Villages International, began accepting donations in bitcoins.
Meanwhile, as Ukraine is experiencing a surge in crypto donations, Russia is one step closer to regulating bitcoin and other crypto assets as currencies.
