Ukraine received millions in bitcoin donations and bought food, fuel, night vision goggles and body armor, among other things. Some suppliers are paid in bitcoin. According to a Ukrainian spokesman, this was not complicated, but simpler and faster than a SWIFT transaction.
Alex Bornyakov of Ukraine’s Ministry of Digital Transformation said nearly $100 million in donations in bitcoin and other cryptocurrencies came in, Decrypt reports. On the official bitcoin donation address, the counter is at 294 BTC and 382 BTC was donated to the Come Back Alive foundation.
Part of the money has already been spent. Bornyakov told Coindesk that food, fuel and equipment such as body armor, night vision equipment and medical equipment were bought with it, among other things.
The purchases are made by the Ministry of Digital Transformation on behalf of the Ukrainian Ministry of Defense. The exchange Kuna provides technical assistance in the implementation.
Easier and faster
A number of suppliers have been paid in cryptocurrency. ?ǣIn a situation like this where the national bank doesn’t really work, crypto helps to make quick transactions, to get it done quickly and to get results almost instantly,?ǥ Bornyakov says.
He calls the role of cryptocurrency “essential in the conflict, in terms of helping the military.”
It presented no obstacles, on the contrary. ?ǣIt is simpler, uncomplicated, transparent and faster compared to a SWIFT transaction, which can take more than a day,?ǥ says Bornyakov.
With other vendors that did not accept payments in cryptocurrency, the funds were first sold through the exchange for regular fiat money, then sent via bank payments.
Multisig
Multisig is used to manage the funds. In addition, signatures from multiple parties are required to complete a transaction. “It’s not just one person who decides. Three out of five authorized signatories have to sign,” explained Bornyakov.
This provides a number of safety benefits. It avoids the need for trust in a single individual, but it also protects against the risk of something happening to a signer. As long as three out of five authorized persons are safe, the funds are also safe.
Bitcoin plays a role in the war in Ukraine in many ways. You can read more about it in an earlier article.
