Ukrainians Embrace Bitcoin For Daily Purchases: Report

[Hydrogen]

NYDIG’s February report highlights how Ukrainian military support continues its influx by the millions as Russian Bitcoin transactions rise.

• $57 million have been donated for military support in Ukraine as of March 4.
• Russian Bitcoin transactions have increased as the BTC/RUB pair trades $62 million, but it does not seem to have affected the BTC price.
• Bitcoin is up roughly 9% for the month of February, coming back from the January dip and separating itself from other risk-on assets.

Ukrainians have embraced bitcoin for everyday purchases as its central bank cuts traditional payment rails.

NYDIG, a financial company that focuses on institutional-grade Bitcoin solutions, released its February 2022 Bitcoin Brief report discussing relevant statistics related to bitcoin as an asset, comparing it to other financial products, and diving into Bitcoin metrics in Ukraine as the Russian invasion perdures.

Speaking to cultural and geopolitical concerns, NYDIG’s report highlighted how “in just seven days, over 113,000 digital asset donations were sent directly to the government or an NGO providing support to the military.” As of March 4, the total value of donations reached $57 million, the report said.

Ukrainians have also been embracing bitcoin for everyday purchases as “the National Bank of Ukraine suspended the foreign exchange market, limited cash withdrawals, and prohibited the use of fiat currencies via digital platforms like Venmo or PayPal,” per the report.

As the invasion continues, NYDIG discussed the theories of Russian purchasing of bitcoin as a way to skirt sanctions saying, “Since the invasion began through March 4, the bitcoin / ruble pair has traded about $62 [million] in volume on Binance (Russia’s dominant crypto exchange), while the market cap of bitcoin has increased by $75 [billion].” They concluded this with, “These are not comparable numbers.”

Bitcoin was up around 9% in February, marking a deviation from the norm as other risk-on assets approached negative territory. This point was strengthened during January when bitcoin dipped along with other risk-on assets.

https://bitcoinmagazine.com/culture/ukrainians-embrace-bitcoin-for-daily-purchases-nydig-report

....

Kraken exchange is gifting $1,000 in Bitcoin to every user in Ukraine

Kraken is putting together a massive assistance package to help victims of Russia’s ongoing invasion of Ukraine, with over $10 million going straight to those who have been affected.

Clients who opened an account with Kraken before March 9, 2022 will be entitled to receive $1,000 in bitcoin, which may be withdrawn immediately from our exchange, starting tomorrow and lasting until July 1. At this time, currency conversion expenses of up to $1,000 will be waived.

“We hope to continue being able to provide critical financial services in a time of need to both our clients in Ukraine and in Russia,” said Jesse Powell, CEO of Kraken. “Cryptocurrency remains an important humanitarian tool, especially at a time when many around the world can no longer rely on traditional banks and custodians.”

As part of the effort, Kraken will also donate an amount equivalent to the total trading fees paid by Russia-based clients in the first half of 2022 to the aid package. Further, additional aid may be announced as the crisis continues to unfold.

https://news.coincu.com/71268-kraken-to-distribute-over-10-million-in-aid-to-clients-impacted-by-ukraine-crisis/

Kraken is offering $1,000 free to the first 10,000 accounts in ukraine who claim it.

Ukraine currently lacks financial payment options with the closure of services like paypal in the country. That vacuum is now being filled by ukrainians using bitcoin.

Another interesting angle to this is Elon Musk warning starlink satellite internet users to be cautious with their usage:

https://twitter.com/elonmusk/status/1499472139333746691

Apparently, starlink is the only non russian communications service in the country which still works and there are some missiles which lock onto sources of EM radiation like satellite dishes and home in to destroy them.

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[Haunebu]

Kraken's offer is pretty good considering the fact that there are millions of Ukraine citizens who could survive this war thanks to that amount. Other popular exchanges need to learn from Kraken in this aspect.

BTC has been going up and down within the $30K - $40K range for sometime now for reasons like Omicron, Russia-Ukraine War etc. Am surprised that it didn't rise even further passing the $50K barrier due to the collapse of Ruble.

Am expecting it to reach a new ATH if this invasion continues for the next couple of weeks.

[Captain Corporate]

 The fact that the whole world is showing support for Ukraine is both great, and also a bit sad at the same time. This type of money could be life changing for many towns and cities all around the world but we did not do it, why? I believe mainly because how people said "these are white skined, blonde people". I mean if we help Ukraine this much (which is AWESOME) but ignored the helps of africans and arabic people who are getting brutally murdered at the hands of some dictators or terrorists, that shows how little we care about people who are not like us. If aggression is the reason we put sanctions on Russia, when will we start doing it for USA? They have been aggressor for many wars in the past 30+ years.

[mk4]

Kraken's Jesse Powell is honestly one of the best exchange CEOs out there in terms of philanthropy and community cooperation. Afaik he's also the only exchange CEO that publicly said that you shouldn't unnecessarily leave funds on exchanges(if you're not trading).

Give him a follow on Twitter: https://twitter.com/jespow

[Husires]

These reports are not accurate, but are measured based on media reports.

• There are no accurate metrics to know the number of Ukrainians who have used Bitcoin to overcome the current problems.
  
• The number of Ukrainian users who used Kraken and are still in Ukraine before 9 March, so the donation of that money may not be large.

The war is still in its infancy, and we do not know how it will end.

[Erumo]

Has anyone tried to calculate how much support Ukraine has already received or will receive during war period? War is terrible, and it requires a lot of resources. But every day I see articles how countries and business are helping Ukraine. After seeing how huge help is, I start to think that if not the war, Ukraine might turn to be one of most developed countries. After seeing, that so many help Ukraine in exchange for nothing, I start to think that if humanity sets a goal to become better, with everyone's help, it can really be achieved.

[kryptqnick]

The only thing I don't understand in the quotes from the op is the part about Ukrainians embracing Bitcoin for everyday purchases due to the central bank cutting traditional payment rails. I'm from Ukraine, and I have tons of friends and relatives who are currently in Ukraine (I've also lived in Ukraine throughout 2019-2021). First, there's no infrastructure in Ukraine to use Bitcoin for everyday things! Some stores and cafés have been accepting Bitcoin for years, sure, but during the war, the 'everyday use' is limited to two things: supermarkets and pharmacies. I've lived in Ukraine for most of my life, and I've never seen an option of paying in Bitcoin in places like that. Then there's the second part about the central bank. What is that about? In Ukraine, the vast majority use banks like Privatbank and Monobank. I'm not 100% sure regarding Monobank, but I can confirm that Privatbank cards work both in Ukraine and abroad right now, and no limitations were officially set on paying by card. Regarding the limitations from the Central bank of Ukraine on foreign currencies and withdrawals, they were lifted.

[Etranger]

First, there's no infrastructure in Ukraine to use Bitcoin for everyday things! Some stores and cafés have been accepting Bitcoin for years, sure, but during the war, the 'everyday use' is limited to two things: supermarkets and pharmacies. I've lived in Ukraine for most of my life, and I've never seen an option of paying in Bitcoin in places like that.

I am also from Ukraine, and I can say that now, in addition to what you said, there are no special opportunities to use bitcoin in everyday life, also because in many settlements there are problems with the Internet. They are not permanent, they are periodic, they are tried to be solved  as soon as possible, but they are presemt here. But even this is not such a problem compared to the fact that many people now simply do not have access to electricity, and simply can not charge devices that could later be used to pay somewhere with bitcoins. Of course, I am grateful for any help for us, but it is too early to say that Ukrainians embrace Bitcoin for daily purchases.

[Hydrogen]

Then there's the second part about the central bank. What is that about? In Ukraine, the vast majority use banks like Privatbank and Monobank. I'm not 100% sure regarding Monobank, but I can confirm that Privatbank cards work both in Ukraine and abroad right now, and no limitations were officially set on paying by card. Regarding the limitations from the Central bank of Ukraine on foreign currencies and withdrawals, they were lifted.

That is certainly good news!

When the coup in myanmar happened in 2021. I think their banks were completely shut down for a time. Which caused many to expect something similar in ukraine. It appears russia may have opted for periodic blackouts, rather than hard blackouts as myanmar experienced. Or perhaps ukraine's internet infrastructure is more hardened than myanmar's and copes better with electronic attacks.

I think Elon Musk's starlink satellite internet service costs $500 for initial cost and $99 month afterwards. If internet connectivity and financial services go down, perhaps the richest man in the world would not mind donating some of his starlink services to ukraine. Mainstream adoption of satellite internet could be another good measure to standardize for cases of civil unrest, war and natural disasters.

[avikz]

It's a temporary trend. I don't see a reason for this trend to continue post the war once things will normalize. Bitcoin is a great investment but not a great currency system. It's expensive and slow which makes it a bad currency system. People from Ukraine is possibly resorting to it due to the war and other difficulties related to cash but there's ni good reason for it to continue.

Bitcoin will become a great currency system only if its price stabilizes.

[Ararbermas]

I am also from Ukraine, and I can say that now, in addition to what you said, there are no special opportunities to use bitcoin in everyday life, also because in many settlements there are problems with the Internet. They are not permanent, they are periodic, they are tried to be solved  as soon as possible, but they are presemt here. But even this is not such a problem compared to the fact that many people now simply do not have access to electricity, and simply can not charge devices that could later be used to pay somewhere with bitcoins. Of course, I am grateful for any help for us, but it is too early to say that Ukrainians embrace Bitcoin for daily purchases.

There's always a solution in any problem mate so don't lose hope..
And there's no need to worry because that donation for every Ukrainians will not disappear, if however up to now there's no stable internet and electricity  because it's really a big problem to be honest.

But for me IMO much better keep that bitcoin donation because surely it's a big help for fast recovery after that war, wherein i will gonna ask relief goods instead in order to survive than spending it.

[Etranger]

I am also from Ukraine, and I can say that now, in addition to what you said, there are no special opportunities to use bitcoin in everyday life, also because in many settlements there are problems with the Internet. They are not permanent, they are periodic, they are tried to be solved  as soon as possible, but they are presemt here. But even this is not such a problem compared to the fact that many people now simply do not have access to electricity, and simply can not charge devices that could later be used to pay somewhere with bitcoins. Of course, I am grateful for any help for us, but it is too early to say that Ukrainians embrace Bitcoin for daily purchases.

There's always a solution in any problem mate so don't lose hope..
And there's no need to worry because that donation for every Ukrainians will not disappear, if however up to now there's no stable internet and electricity  because it's really a big problem to be honest.

But for me IMO much better keep that bitcoin donation because surely it's a big help for fast recovery after that war, wherein i will gonna ask relief goods instead in order to survive than spending it.

Thank you for your support! Unfortunately, I missed that information about Kraken`s donations for this very reason. It's too late to register today, I was just a few hours late. Therefore, after the war I will have to look for other ways to recover.

[stompix]

The only thing I don't understand in the quotes from the op is the part about Ukrainians embracing Bitcoin for everyday purchases due to the central bank cutting traditional payment rails.

As always news like that is overly exaggerated, it has been like that for all countries, Malta, Venezuela, Cyprus Syria and Afghanistan.

Even if we wouldn't have confirmation from poeple like you on the ground that's not the case the article itself shows no proof of "daily purchases growing" and actually in the entire article they are not mentioned anywhere but the title.
The crypto press is right now falling below dailymail or thesun and I've never thought that would be even possible.

Has anyone tried to calculate how much support Ukraine has already received or will receive during war period? War is terrible, and it requires a lot of resources. But every day I see articles how countries and business are helping Ukraine. After seeing how huge help is, I start to think that if not the war, Ukraine might turn to be one of most developed countries.

Not a chance, unfortunately.
Kraken might be donating 10 million and that might sound much but when you have a full block of flats destroyed that alone cancels the entre donation, and there are thousands of poeple who have lost their homes, their jobs, and everything else. Donations will just help short-term with a struggle to survive but in order to reconstruct the county after the war even if it stops now you will need tens of billions, not counting the fact that no amount of donation will bring the thousands dead back to life.
They will need a Marshall Plan after this.

[fiulpro]

I was not aware of kraken gifting it's users 1000$ in Bitcoins, god I would have just signed up for it! Sad missed the package.
Rest lemme answer some questions here :

1. The bank itself is not really directly cutting off the traditional payments but we have a shortage of cash supply and at the same time people are not able to withdraw since most of them ran to other countries..

2. You won't be able to withdraw cash, it's a problem that I encountered for a week straight since people are looking to get every single bit of cash that there is therefore ATM is always out of the money since the whole burden is on the west.

3. Bitcoin is very popular in Ukraine, there are offices as well where you can go in person and buy them, those places are generally working normally and you can make payments in Bitcoin to the people that accepts that.

4. Donations are pouring down unfortunately it's not directly going to the public, it's used by the government to fund everything, from military to other food chains being set up in the local west. Therefore it's not like ukranians are becoming rich, on the other hand they are struggling really bad.

[xSkylarx]

First, there's no infrastructure in Ukraine to use Bitcoin for everyday things! Some stores and cafés have been accepting Bitcoin for years, sure, but during the war, the 'everyday use' is limited to two things: supermarkets and pharmacies. I've lived in Ukraine for most of my life, and I've never seen an option of paying in Bitcoin in places like that.

I am also from Ukraine, and I can say that now, in addition to what you said, there are no special opportunities to use bitcoin in everyday life, also because in many settlements there are problems with the Internet. They are not permanent, they are periodic, they are tried to be solved  as soon as possible, but they are presemt here. But even this is not such a problem compared to the fact that many people now simply do not have access to electricity, and simply can not charge devices that could later be used to pay somewhere with bitcoins. Of course, I am grateful for any help for us, but it is too early to say that Ukrainians embrace Bitcoin for daily purchases.

Just keep your chin up and hope that this will come to an end soon. Yes, it is extremely difficult to use bitcoin without a device and an internet connection, but I believe that if you travel to other countries, such as Poland, you will be able to charge your device and obtain electricity. However, I have heard that Ukrainian money is not accepted everywhere in the world. So, in essence, it was a block? Because it can be used anywhere, cryptography is extremely beneficial in terms of saving time. I believe that, unless you live in a first world country, not everyone will accept bitcoin for everyday purchases.

[hatshepsut93]

Sorry  but it's bullshit that ukraine lacks financial services or payment methods and that people turn to bitcoin. In most of the country you can pay with visa/Mastercard cards, thanks to Ukraine's law that all small businesses must install cash registers. And all Ukraine's banks still function with little disruption. But cash is a must have if you are moving through rural areas or active warzones.

[stompix]

However, I have heard that Ukrainian money is not accepted everywhere in the world. So, in essence, it was a block?ot everyone will accept bitcoin for everyday purchases.

It's not Ukrainian money it's cash that is not accepted and of course, it's not, do you think a store in Hungary will accept Polish zlotys or a store in Portugal danish krone?  Visa cards from Ukraine still work, you can use them everywhere in the world and they are still working fine even in conflict zones.
Besides both in Poland, Slovakia, and Romania banks have been starting to accept cash exchanges to euros to help refugees, those were not in place before because there was little need for them, apart from border towns you would rarely have Ukrainians exchanging cash, just how you won't be able to find that many taking yens around here.

Sorry  but it's bullshit that ukraine lacks financial services or payment methods and that people turn to bitcoin.

Of course, everyone would ask themselves, because visa and MasterCard and bank payments are down, Ukrainians would use bitcoins they've bought...how? 

[countryfree]

3 years ago, I almost bought a house in Ukraine. None of the buyers I've talked to accepted Ukrainian currency as payment, they all wanted US$. I'm not sure they would accept BTC nowadays, but it's possible. When it comes to daily purchases, the use of BTC seems absolutely impossible to me. You can't buy anything with it, but Ukraine still has some 3 cents banknotes.

[Darker45]

~snip~

~snip~

A big thanks for clarification!

The problem with these Bitcoin-centered online publications is that they tend to exaggerate and sensationalize so much so that accuracy is completely gone from their articles. They are supposed to be part of the media, whose sole function is simply to report facts. However, it's not the case anymore with these crypto publications. It seems their business is crypto or Bitcoin marketing and promotion. They're now behaving like the traditional media which has become a tool for mind conditioning, although these crypto publications are on the other side of the fence.

[Moneyprism]

Kraken is offering $1,000 free to the first 10,000 accounts in ukraine who claim it.

This is of course good news, but how do users in Ukraine exchange their crypto to fiat when there are many banks that are not operating?