Russia and Ukraine have experimented with using cryptocurrencies to shore up their positions financially.
More than $360,000 in bitcoin has been donated to the Ukrainian army in the last day, industry publication Bitcoin Magazine reports.
But how it is being donated, where it is being deposited and how it will ultimately help the besieged Eastern European nation in its conflict with Russia remains unclear.
Beware of Phishing Scams
There is one safe place thus far to donate money to Ukraine.
The Ukrainian government announced today that it has created a designated bank account where well-wishers can deposit donations via foreign currency wire transfers.
The country’s official account does not accept cryptocurrency yet, Ukraine said, or other Web-based payment systems including PayPal, bitcoin or Webmoney.
That account is being overseen by Ukraine Now through the Ukrainian government’s official website.
But the clarion call to help the Ukrainian war effort has been immediately clouded by imitators, with TheStreet unable to verify the credentials of several major operations ostensibly collecting money on the country’s behalf.
Other sites that are accepting donations include savelife.in.ua/en/donate/ and a Google Doc account widely available on social media that has not been verified as linked to the Ukrainian war effort of working in tandem with Ukrainian authorities.
So Where Are Those Donations Going?
Ukrainian leaders said that the nation’s Ministry of Defense will oversee the funding, but was not more specific about how and where it may be deployed.
Both sides have experimented with using cryptocurrencies to shore up their positions financially.
Yesterday the New York Times reported that Russia, too, will use its stockpile of crypto to duck sanctions by created a “digital ruble” and direct potential ransomware.
How either side may be able to use digital currency raised questions on Thursday. The world financial system has quickly been walling off Russia’s access to larger global markets, and Ukraine is seeing much of its financial system shaken by regional turmoil.
Armies using digital currency to fight wars happening on the ground also faced its own criticism, given the difficulties associated with cashing in cryptocurrencies:
Other pundits mulled that while $360,000 may sound like a lot to the average world citizen, in bitcoin terms, it is nowhere close to being a record-size donation.
