Photo by Shubham Dhage on Unsplash
(Photo : Shubham Dhage on Unsplash)

Since Russia invaded Ukraine, companies around the world are facing not only a financial crisis but technical difficulties in providing their services. In times of war, we've seen businesses suspend their operations, communication has been infiltrated, finance, transportation and energy infrastructures traditional systems are vulnerable to enemy cyber attacks. Within this instability, cryptocurrency has become the only real certainty and a crucial tool for Ukraine's national security. Blockchain technology and cryptocurrency have already brought numerous innovations, and now we are witnessing how crypto, and NFTs, serve as potential lifelines for survival on all fronts.

With the increased risk of infrastructure and data damage, the security of cryptocurrency is particularly appealing to government and military operations. The president of Ukraine Volodymyr Zelensky signed a bill legalizing digital assets within the country which allows for the raising of funds for military aid. Alex Bornyakov, Ukraine's Deputy Minister of Digital Transformation reasserted his support for cryptocurrencies on his Twitter account, saying that "crypto has become an essential tool of Ukraine's defense, providing flexibility and speed that literally saved our soldiers' lives".

Tomicah Tillemann, who was a Biden staffer in the Senate and now works as chief policy officer for a new crypto venture capital firm started by former federal prosecutor Katie Haun, called the outpouring of help to Ukraine a "vivid illustration" of the technology's potential "to help strengthen open societies and safeguard democratic values." She also mentioned policymakers who specialize in security would rather have more financial activity flow to cryptocurrency because it is easier to trace. "It's actually a massive step up from the pallets full of cash that were previously sent into conflict areas," he said.

The fact that cryptocurrency transaction is generally quick, secure, and direct process makes it a very effective humanitarian tool. Besides, in Ukraine, the ability to send or receive money in traditional ways has become limited as the government instituted martial law on February 24 due to the war. Therefore, donating in crypto or NFTs allows funds to land directly in the hand of displaced Ukrainians without the need of a central bank. NGOs and CBOs have maximized the use of crypto donations, accepting funds that have gone directly to bringing the most vulnerable children, elderly, and single mothers with their children to safety; both internally displaced and refugees.

Crypto also provides a way for donors to track how their contributions have materialized. Blockchain technology makes it possible to see an itemized list of everything that was spent out of wallets, which is absolutely incredible for government transparency. For example, the last report of the Ministry of Digital Transformation of Ukraine shows how the government spent the last $45 million donated in cryptocurrencies.

Another essential issue during geopolitical showdowns is financial security. As economies crash, Ukrainian citizens as well as foreign investors and business individuals who run their companies in Ukraine can no longer turn to institutions backed by their governments. And that's where a privacy-first approach to blockchain technology comes into play. Because crypto has no borders, the effects of geopolitical conflict do not have the same impact on currencies, allowing them to retain their value. In such a way, people can protect a part of the lives they've built for themselves. Furthermore, the decentralized nature of cryptocurrency enables people to use it to a country where they may have traveled for safety. Giving citizens access to money in currencies other than their own can mean the difference between poverty and subsistence.

Apart from financial issues, people all over the world are risking their lives to protest the war in Ukraine, Russian citizens included. Protesters can face intense repercussions for assembling against the war, from short-term detainment to 15 years in prison. Activists can protect themselves by using blockchain platforms with privacy-preserving smart contracts to organize anti-war gatherings securely and anonymously, meaning groups or governments cannot be notified of their plans. Blockchains' encrypted method of communication acts to create a safe space for millions looking to take a stand that could change the course of war.

Now there's a new frontier. To bolster the kind of war-crimes evidence that has not always proved easy to admit to international courts, different initiatives use blockchain technologies to gather unencrypted intelligence in war zones. While for some Americans, the blockchain seems incomprehensible or just another kind of scam, war-crimes prosecution may provide an unequivocally positive use. The project, which comes out of the Starling Lab boasts human rights experts and former US government officials among its leaders and hopes to use blockchain technology as well as other tools to ensure that evidence isn't lost, challenged or corrupted by those who want the alleged crimes of the Russian invasion force covered up.

Activists can recount a long list of failed prosecutions by the International Criminal Court because of a lack of official material. In 2014, for instance, prosecutors at The Hague court withdrew charges against Kenyan President Uhuru Kenyatta because the Kenyan government was withholding evidence prosecutors said they needed to move forward. Social media isn't any better because their algorithm may automatically take the images down for graphic-content reasons or a human staffer can bow to a challenge initiated by someone trying to cover it up. Human Rights Watch review of Facebook, Twitter, and YouTube showed that fully 11 % of the videos and images the group cited in its 4,739 reports of abuse over the previous 13 years had since been taken down by the sites, essentially making the evidence disappear.

"The technology is very possible. But it's easy to get it wrong and easy to do inefficiently, so we need to do our jobs right so it doesn't come back to hurt us later in a case," says John Jaeger, a former State Department employee who founded Hala, a private company funded by the U.S. government that uses artificial intelligence to gather unencrypted intelligence in war zones.

Ukraine's current experience exemplifies the opportunities and challenges ahead for the blockchain industry and may transform how aid is distributed globally. It might also help the sector demonstrate a side of crypto that policymakers and regulators often overlook in their concentration on using currencies as a means of illicit finance.

In times when individuals are most vulnerable, reliable technology is especially vital, and we are already witnessing the results of this play out in real-time. The status quo is no longer sufficient to provide financial security, payment privacy, or even personal safety. In order to allow consumers to protect themselves in times of global turmoil, the blockchain industry must make a commitment to developing solutions that put privacy and security first.

Blockchain and cryptocurrencies clearly offer a myriad of benefits, as evident in this article. However, a comment must be made regarding these assets' regulation. An adequate set of regulations compiled smartly could ensure both a high level of investor & consumer protection while ensuring market integrity and promoting innovation. Emphasizing regulations that protect consumers and investors from some of the dangers associated with investing in crypto-assets and other blockchain-based financial products, as well as assist them in avoiding fraudulent schemes. This would bring the industry in line with similar regulations legacy financial institutions have been subject to for decades without harming serious industry players or changing the nature of De-Fi technologies. Having regulations in place would actually promote a more widespread adoption of the technology, make its benefits more apparent and increase trust in the market.

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