From 486 billion to 1.1 trillion dollars – Ukraine’s reconstruction needs are estimated in this range.
While international aid is essential, bureaucratic hurdles often slow down financing of urgent projects such as energy, health, and education facilities. In this regard, the use of virtual assets can significantly speed up processes.
Since the beginning of the Russian invasion, Ukraine has been receiving help in virtual assets from various parts of the world. Aid for Ukraine works to finance military and humanitarian aid, the United24 platform, already well-known everywhere, allows you to make contributions with virtual assets through the Silent Donor system. In addition, for the accountable management of the reconstruction process in Ukraine, a single digital DREAM ecosystem has been created, which enables international governments to support specific projects and see progress related to allocated funds.
Can all these efforts be combined to match donations of virtual assets with specific rebuilding projects? In a new analytical note, Oksana Ihnatenko, researcher of the project “Supervising and Monitoring Ukraine’s Reconstruction Funds (SMURF)”, considers the possibility of using virtual assets to facilitate the receipt of aid for the urgent needs of the reconstruction of Ukraine, as well as the question of how stakeholders can provide transparent information about use of funds.
What should be done to optimize the use of virtual assets for recovery purposes?
✔️ Step 1: Understand regulation – Establish robust regulation to increase international donor confidence and combat financial crime.
✔️ Step 2: Consider Pre-existing Infrastructure- Create a centralised donation platform to reduce fraud risks and ensure transparency.
✔️ Step 3: Develop Strong Cyber-Security Infrastructure and Protocols – implement strict access protocols to the private keys of donors to minimize corruption risks.
✔️ Step 4: Test the System Before Launch – Perform detailed testing of the donation system to identify vulnerabilities before launch.
Ukraine already accepts donations in the form of virtual assets for the needs of war and humanitarian aid, so the development of a reliable virtual asset management system is becoming increasingly important.
🔗 Read the full text of the analytical note here
Supervision and Monitoring of Reconstruction Funds of Ukraine (SMURF) is a joint project of the Centre for Finance and Security (CFS) at RUSI and the BRDO. SMURF supports the stability and integrity of Ukraine’s financial system through thorough research and proactive measures. Learn more about SMURF or visit the official LinkedIn page.