Crypto industry is here to stay, says Ukraine minister

Amid sluggish sentiments in the cryptocurrency market, a Ukraine minister on Tuesday said the digital assets have played an important role in the country’s defence against the invasion by Russia, saving the lives of the country’s soldiers and that cryptocurrencies were going to stay unscathed in the long run.

According to reports, since an armed invasion by Russia, Ukraine has raised over $125 million through donations in cryptocurrencies that were spent on military assistance and humanitarian aid. Also, around $1.25 million were raised through sales of NFTs.

“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, Deputy Minister of Digital Transformation of Ukraine, said.

Since Russia invaded Ukraine on February 24, an outpouring of support has streamed in from various avenues and personalities from across the world.

Apart from humanitarian aid from various organizations, Ukrainian officials have been appealing to the global crypto community to support their fight by donating crypto assets while artists have resorted to releasing NFTs themed around Ukraine and channelling proceeds to the cause.

Following a mass sell-off of cryptos from an all-time high seen in November last year, crypto donations to Ukraine over the last two subsided, prompting Bornyakov to appeal for fresh help last month.

“Even though Ukraine raised over $135 million in crypto in response to the Russian invasion, the first wave of crypto donations has subsided. We still need your help. Please support our defenders via  @_AidForUkraine,” the minister tweeted last month.

A bulk of these funds have already been used to provide important essentials such as food for civilians and protective gear for the country’s soldiers, with President Volodymyr Zelenskyy reiterating his belief that digital assets can bring about an economic breakthrough for countries like Ukraine considering Russia’s threats to its banking system.