The KUNA Exchange founder said the government chose crypto over fiat during the war because of its speed to confirm related transactions.
Michael Chobanian, founder of Ukraine’s largest cryptocurrency exchange, KUNA, has disclosed the roles crypto has played for the country since the beginning of the Russian invasion.
Speaking in a recent Bloomberg interview, Chobanian noted that he has been a crypto banker for the government since the invasion, and has been helping in several cryptocurrency initiatives, including fundraising and secure storage, as well as crypto-to-fiat exchange.
Chobanian added that his job during the warfare also included opening new bank accounts for the government and identifying merchants who are willing to accept cryptocurrencies in exchange for humanitarian goods and war equipment to better aid the country’s Ministry of Defense.
According to the founder of KUNA, Ukraine opted for cryptocurrency payments because of the speed it takes to settle transactions.
“It takes 10 minutes for a Bitcoin block to close [average confirmation time for a Bitcoin payment]. And it takes about three days to do the same thing through the banking system,” Chobanian added.
Chobanian, who is also regarded as the father of the Ukrainian cryptocurrency industry, said if the nation had opted for fiat, it would have taken approximately one day for the country to receive all donations in an account in U.S. dollars.
An additional day will be spent by the banks in confirming the transactions on the SWIFT network to ensure the funds reach their final destinations.
“So three days vs. 10 minutes—therefore, we prefer crypto. And you can understand that time is money for my country right now.”
At the moment, saving a minute in whatever is done financially in Ukraine translates to saving someone’s life, Chobanian noted, adding:
“We are trying to speed up the process and crypto is helping us here.”
He said that crypto is the most valuable form of money in Ukraine and everyone wants crypto.
“Now the most valuable form of money in Ukraine is crypto. Everyone wants crypto because this is the fastest, the most flexible, easiest, and least bureaucratic way to store and spend your money. Crypto is the new king of money in Ukraine.”
Cryptocurrencies have played an integral part in supporting Ukraine’s resistance against Russian forces. The country has received tens of millions of dollars in crypto donations from concerned individuals and firms, including Ripple.
Alex Bornyakov, Ukraine’s deputy minister for digital transformation, disclosed earlier this month that crypto donations have come in handy for purchasing necessary equipment like 5,500 bulletproof vests, night-vision goggles, 500 helmets, and medicine.
Ukraine has received above $100 million in crypto donations, according to Alex Bornyakov, Ukraine’s deputy minister at the Ministry of Digital Transformation.
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