Massive Crypto Donations in War-Struck Ukraine
The Ukrainian crypto market was one of the fastest growing markets worldwide and mass-scale crypto adoption was led by the country’s capital, Kyiv.
However, the development was stopped mainly because of the war waged by Russia over Ukraine.
During the war, they began a second round of massive adoption as crypto donations were pouring into Ukraine from all over the world.
It is true that when the war began, Ukraine was provided financial aid in the shape of crypto donations for holding its ground tight.
Since then, countries and organizations from around the world have continued providing aid to Ukraine in the form of cryptocurrencies.
It has increased the adoption level of cryptocurrencies tremendously. Things have been working out really well in favor of Ukraine when it comes to cryptocurrencies.
Ukraine admits that the donations it received helped the country at the critical stage of the war. They are able to take care of so many things with the help of funds that have been sent from international platforms.
This admission was also officially acknowledged by Mykhailo Fedorov, Ukraine’s Vice Prime Minister as well as Digital Transformation Minister before the media.
Fedorov was recently on an official visit to Switzerland where he said that crypto donations were significantly helpful in countering Russian attacks.
Ukraine at the World Economic Forum
From the panel of the World Economic Forum (WEF), Fedorov spoke about the economic challenges with which the country is dealing.
He said that due to the imposition of Martial Law, Ukraine was unable to purchase equipment. However, with the help of crypto donations, Ukraine did manage to buy the equipment needed immediately and provide it to the armed forces.
Fedorov then thanked the global community for ensuring their support by sending in crypto donations at a time when they were needed desperately.
Ukraine’s Plans for Cryptocurrencies
He also spoke about Ukraine’s future plans, particularly with regard to cryptocurrencies. They consider cryptocurrencies to be very promising for the recovery of their government when things get back to normal.
According to Fedorov, Ukraine’s Government is in the process of establishing a robust legal framework exclusively for virtual assets. He hinted that the Government in Kyiv plans to fully legalize digital currencies in the country.
He apprised that for legalizing digital currencies, a law on the subject has already been passed by the country’s Parliament last year.
According to Fedorov, the proposed legislation is likely to come into force right after incorporating amendments to the national Tax Code.
Amendments to the National ‘Tax Code’
He informed me that the Tax Code is under review and various amendments to the legislature, with regard to crypto, have been suggested.
Fedorov was proud to express that after the Tax Code amendment, Ukraine would become the best state worldwide, especially in regard to cryptocurrencies.
He stated that Ukraine is awaiting its membership approval in the European Union. He emphasized that once the membership is given, Ukraine would then need to adopt laws set up by European Union for ensuring harmony.
He referred to the suggestions offered by World Bank and International Monetary Fund for the region that Ukraine would need to embrace.
Ukraine’s CBDC Coming Soon
The Digital Minister of Ukraine also shed some light on the upcoming project of Ukraine comprising of central bank digital currency (CBDC).
It is to be noted that at the beginning of 2023, Ukraine had initiated pilot testing of its CBDC called ‘E-hryvnia’.
Fedorov said that he personally supervised the pilot testing phase of E-hryvnia. He also said that the testing phase is advancing toward its end goal with the help of Stellar and a local bank.
Ukraine’s central bank the National Bank of Ukraine (NBU) would also be in charge of E-hryvnia. NBU is eyeing introducing national CBDC-concerned legislation by 2024.
Meanwhile, Fedorov has suggested that he would like to become the first official willing to receive monthly remuneration in E-hryvnia.