In recent developments, Ukrainian President Volodymyr Zelenskiy has expressed anticipation for increased Western defense assistance to Ukraine within the next two months. The geopolitical landscape surrounding Ukraine has been marked by heightened tensions and security concerns, particularly in the face of regional conflicts.
As the international community grapples with the complexities of geopolitical dynamics, there is a growing interest in exploring unconventional avenues to supplement traditional forms of aid. Cryptocurrency, with its decentralized and borderless nature, has emerged as a topic of discussion in this context. The question arises: Can crypto play a role in providing assistance to Ukraine’s defense efforts?
Zelenskiy puts military faith in the west
On Saturday, President Volodymyr Zelenskiy expressed optimism that a number of new Western defense packages for Ukraine would be ratified this and the following month. Zelenskiy stated in his nightly video message that:
We are preparing new agreements with partners – strong bilateral agreements […] January and February should bring corresponding results. There are already specific dates when new and strong documents can be expected.
Volodymyr Zelenskiy
In February 2022, following Russia’s full-scale invasion of Ukraine, Kyiv’s Western allies came together to offer Zelenskiy an unprecedented amount of military and non-military assistance.
However, as the conflict enters its third year and there has been little progress along the front line over the past year and a growing resistance to increased aid in the United States, the influx of funds and equipment has been sluggish in recent months.
The names of the nations with which Zelenskiy intended to reach agreements were omitted. The president of Ukraine has been engaged in diplomatic talks around the world for weeks in an effort to acquire additional political and military support.
Consistently, he has emphasized that the escalation of Russian winter air strikes and Moscow’s laborious yet gradual offensive in the eastern region of Ukraine have underlined the necessity for additional fortification of the air and ground defenses in Kyiv.
The United Kingdom, a staunch supporter of Kyiv, announced earlier this month that it would increase its financial assistance to Ukraine to 2.5 billion pounds ($3.19 billion) over the course of the following fiscal year.
On Tuesday, French President Emmanuel Macron announced that he would travel to Ukraine in February to conclude a bilateral security guarantee agreement that would require the delivery of more advanced weaponry, including long-range cruise missiles, by France.
Crypto’s help to Ukraine
Since the commencement of Russia’s comprehensive incursion 2 years ago, Ukraine has amassed contributions totaling $225 million in cryptocurrencies exclusively per the last recorded data count. This represents a negligible portion of the billions of fiat donations that Ukraine has amassed. However, the crypto component was used to fund the acquisition of vital war supplies such as weapons, ammunition, medical apparatus, and more.
A year and a half ago, in June of last year, approximately $135 million was donated in cryptocurrencies, indicating that crypto users from around the globe continued to support Ukraine over the course of the previous year. In late 2022 and 2023, monthly contributions remained stagnant, and since May of last year, the organization has failed to raise more than $10 million per month.
The month of March 2022 was the most productive in terms of donations, owing to the onset of the war and the highest level of international solidarity towards defending Ukraine against the Russian invasion.
According to available data, the army’s fundraising efforts receive fewer contributions than humanitarian initiatives. Ukrainian funds raised approximately $134 million in crypto for humanitarian purposes, while military-oriented campaigns amassed $91 million.
Data analysts estimated that the majority of contributions ($83 million) were in the form of USDT, with a marginal amount ($79 million) being in ether. Donations of Bitcoin amount to $41 million, with the remainder coming from lesser cryptocurrencies such as Polkadot’s DOT and Binance USD (BUSD).
The discreet nature of fundraising and the widespread international censure of Russia’s actions could potentially account for the considerably reduced funds raised.
