For the purpose of bypassing existing sanctions, regions in eastern Ukraine are trying to formalize the use of Bitcoin.
The Donbass region, well-known since 2014 for the conflict and controlled by a rebel government, supported from Russia, is about to stabilize its economy with the help of cryptocurrency. The regional government expects it to attract investment again through decentralized technology.
At the beginning of August, we could see the inauguration of DAO Donbass (Donbass Decentralized Autonomous Organization), holding a press conference to explain its intentions for the region.
“We’re going to make the region attractive as a place to use Bitcoin and realize blockchain projects,” as the DAO’s Facebook page says.
Support from public authorities and the Association of Entrepreneurs should definitely help any investment activity in the region and increase attractiveness of DAO Donbass within aninternational Bitcoin community.
The reason is simple. Region of Donbass, declaring itself as the Donetsk People’s Republic (DPR) (yet officially unrecognized), has been under an economic blockade for the last two years, with even Russian banks forced to suspend any cross-border transfers on the grounds of geopolitical pressure.
While Russia still remains only monitoring the use of Bitcoin, Donbass region seems to be making further steps to accept the cryptocurrency as an official currency of the local government.
“I’m convinced of the need to develop this technology in our republic,” Larissa Polyakova, DPR minister for education and science stated on the conference.
In Ukraine, still claiming Donbass being part of their country, Bitcoin was regarded much more leniently as the East European country struggled with significantly low consumer appetite and the cryptocurrency was helpful for consumers in this case.
Moreover, the Association of Entrepreneurs released the results of the conference, stating that measures for Bitcoin and blockchain development in the region were moving forward. As the association stated: “The use of decentralized databases is not restricted to the mining and circulation of cryptocurrency”.
The DAO Donbass is inviting anyone to invest in its project, stating on its official website:
“Given the difficult situation in the region, organizers have decided to allocate 10% of funds to commercial projects which will improve socioeconomic indicators and help build a transparent model for interaction between businesses and the government.”
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