Technology

Ukraine disbursed 14 million USD in donated cryptocurrency


Since calling for support in crypto, Ukraine has received more than 36 million USD from donors.

To date, at least 14 million USD of the total 36 million USD in virtual money raised for this Eastern European country has been used.

Transactions on most cryptocurrency networks are public, which is also one of the essential attributes in blockchain technology. But that does not mean that backers can know exactly what the money is used for.

Ukraine, the second-poorest country in Europe by gross national income (GNI), has long been plagued by corruption. As a result, some fear that crypto donations, while traceable, may not be used for the right purposes.

According to Michael Chobanian, founder of the Kiev-based cryptocurrency exchange Kuna, which is also a central focal point in the Ukrainian government’s fundraising efforts, cryptocurrencies have brought enormous benefits to the country. .

Chobanian insists that all steps related to charities are carried out efficiently and that “the majority of spending is done in virtual currency”. Donations are divided into two parts: Support for people affected by war and support for military operations.

Crypto Fund of Ukraine, established 2 days ago, is mainly used to buy food, gas, medicine and weapons for people as well as for evacuation.

The second e-wallet, supporting military operations, is coordinated by the Digital Converter. Currently, Chobanian’s trading platform is assisting the government in converting cryptocurrencies to fiat. It is the Minister of Defense of Ukraine who decides on the allocation of funds.

Initially, Ukraine was limited to accepting donations in Bitcoin, Ethereum or Tether (USDT), but since March 2, it has also accepted other currencies. Contributions in less popular virtual currencies like DOT (Polkadot coin) and Tron will be converted to Bitcoin and Ethereum via the Kuna exchange.

The exchange must also ensure the source of donations is “clean” and blacklist suspicious transactions. After that, the virtual currency will be transferred to “cold storage”, protected by a multi-signature wallet (multisig), a form of electronic wallet with the management of many parties.

Vinh Ngo (according to Yahoo Finance)

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