--- index: 11 layout: fellow title: Crypto adoption in Ukraine fellowName: Valeriia cohort: 3 country: Ukraine lat: 50.4501 lon: 30.5234 image: /content/fellowship/Valeriia/valeriia-headshot.jpg description: Studying and documenting grassroots adoption of blockchain and other decentralized applications within the Ukrainian community tags: - research - europe - 2023-cohort-3 --- # Ukrainian Crypto: Communities, Users, and Opportunities Valeriia is a user experience specialist and an advisor to the Ukraine's Ministry of Digital Transformation. The war in Ukraine has shown that ingenuity and tenacity in human coordination is essential. When understanding the potential of protocols like Ethereum to be useful in such a time, pragmatism is wise. During her Fellowship, Ria researched the real drivers and blockers of adoption of cryptocurrencies and other decentralized applications for ordinary users to map emergent use cases and behaviors in Ukraine. --- ### A Happy New Year I remember the last day of 2021. Overwhelmed—in the best way—by accomplishment and gratitude, I stood reflecting on the reasons I felt so related. So many good reasons. In 2021, I joined Ukraine’s Ministry of Digital Transformation, aligning with my mission since returning to Ukraine: to drive blockchain and crypto adoption at the government level. As a program manager at the state Blockchain Office, my team and I successfully piloted a major educational initiative we planned to expand the following year. That year, the crypto community was on an incredible high. And not just because of the numbers going up (though it certainly helped the vibes). It was about unity and self-organization on another level. The most striking example was the community’s purchasing the rights to Ukraine’s most iconic blockchain convention, planning to revive it in 2022. Another? The Foresight 2030 project—a collaborative effort between business, government, and community to create a shared vision for the industry’s future. >*“The Foresight Virtual Assets 2030 was an inspiring initiative. It created a safe, collaborative space for all its diverse and highly participative audience (representatives from business and from government and independent experts) and the insights and ideas born there proved to be valuable over time.”* >— **Participant, Adviser at one of Ukraine’s Government Bodies** On the government side, things were also moving fast. The crypto bill passed—though not without some drama, as the first version was vetoed. But progress was in motion. Ukraine ranked #1 in Europe by Chainalysis, and it felt inevitable: we were on the path to becoming a pioneering crypto nation. For me personally, 2021 was the happiest and busiest year of my life. I remember that New Year’s Eve, watching the mirrored disco ball, imagining all the sparks 2022 would bring. Then the ball dropped—and shattered. ### Debris and Rubble  The early morning of February 24 rewrote everything. In Ukrainian, "February" translates to "Outrageous," and that’s exactly what it was. Survival became the main focus—for individuals, for communities, for the nation. For over 300 years, no Ukrainian generation has been free from Russian oppression. This war was just the latest iteration of an old story.  In the industry, other misfortunes followed. Yes, FTX’s collapse was a shock to everyone. But for Ukraine, even that paled in comparison to the damage caused by the National Bank’s decision to block payment gateways which obliterated the local crypto market overnight. >*“Ironically, the most dramatic impact on the crypto market was caused not by the war but by the National Bank—indirectly.”* >— **Crypto entrepreneur** Personally, those first weeks were the hardest of my life. A dark, heavy void settled inside me, paired with realization that the future—for me, for my country—was completely uncertain. Yet even amidst the devastation, *volya*—Ukrainian spirit, meaning 'will' and 'freedom'—has been manifesting itself everywhere, as it always happens during turbulent times. ### Volya Volya embodies Ukraine’s enduring democratic spirit and grassroots power. From electronic petitions to viral social campaigns, Ukrainians leverage civil society tools to drive change—whether reshaping legislation or rallying against controversial figures. Democratic values run deep in our culture, tracing back to the 1710 Constitution of Pylyp Orlyk and the Kozak Republic. Modern milestones include the 2004 Orange Revolution, sparking global movements, and the 2014 Revolution of Dignity, which changed the government and realigned Ukraine with the West. And the Ukrainian crypto community has fostered countless joint ventures in fully horizontal settings—decentralized yet deeply connected and collaborative.  >*“Ukraine and Ukrainians are often underestimated on the global stage simply because they are not fully understood. Yet, the Ukrainian mentality is uniquely aligned with Web3 values and principles inherent to the crypto community.”* >— **Web3 entrepreneur** In spring of 2022, the community reached unparalleled levels of unity as if we all shared the same soul. Projects sprang up everywhere—from fundraisers to supply chain initiatives run by people who’d never done logistics before. Crypto became a lifeline. In the first chaotic days, when institutional aid was delayed by inevitable bureaucracy, crypto donations saved lives, allowing volunteers to buy equipment immediately. And later, it would prove its importance in other use cases. The President signed the crypto bill in the war’s second month—probably, one of the hardest times, when the future was murkiest. And that decision sent a clear signal: this mattered. The educational program I was working on was launched and exceeded expectations with over 30,000 participants.  Crypto stayed on the agenda—for both the country and its people. While financial applications dominate, like it or not, its impact has sparked paradigm shifts beyond money. Large donations in crypto—especially from high-profile figures—showed more than just financial aid. When Vitalik sends millions within hours of the invasion, visits a hackathon in Kyiv (twice), or Gavin Wood contributes another $5M in DOT, it’s not just money; it’s solidarity and a signal to the world. Many Ukrainians saw their trust in institutions crumble—or at least take a heavy hit. And here, crypto stepped in, not just as a financial tool, but as an alternative to systems that suddenly felt shaky and less reliable. >*“People are turning to crypto to protect their finances. It's not tax evasion; it's about safeguarding one's rightfully earned money.”* >— **Ordinary user** What used to seem shady or obscure became something legitimate: a way to safeguard value in a completely new way. >*“For years, I had been sure that bitcoin was about gambling and something like an illegal casino.”* >— **Freelancer who now accepts crypto from clients** When it’s about your own money, the motivation to learn is intense—especially if the lessons are harsh.  >*“I had a terrible experience when a wallet froze all my funds because one transaction was linked to gambling. It was a very expensive lesson on custodial and non-custodial wallets.”* >— **Ordinary user** It's true that many users will stay at the surface level, using crypto for payments, savings, and donations, but the groundwork is laid. Crypto didn’t just save assets; it opened doors to curiosity and adoption, probably paving the way for applications that will go beyond financial ones. For me, the year brought a mix of clarity and a fragile sense of safety. I moved my parents abroad, and my professional journey led me to Seattle, a city that welcomed me with unexpected warmth. At times, it felt like I had two hearts—one grieving the life that рускій мір has destroyed and the other cautiously embracing the new life I was building. That joy came laced with guilt, as I realized what a privilege it was to have the chance to start over. ### Negative Slope This all held true during the first year of the full-scale invasion. But now, it feels like we’re stuck—caught in limbo, neither here nor there. The war is not over—and is far from over. People are increasingly untethered from their original homes. Many have relocated, shifted their priorities, or lost their lives. Unity is unraveling, giving way to frustration and growing misalignment. Ukraine’s crypto trajectory is now on a downward slope as well—not a steep one, but the backsliding is unmistakable. Regulation has yet to be established, with almost 3 years having passed without updates. And even if the amended bill is adopted soon, it will take years to align the broader legal framework for it to be in full legal force. We’ve missed the chance to be trailblazing pioneers. Donations have dwindled. Volunteers are burning out. Every day brings more devastation. Like so many Ukrainians abroad with loved ones back home (mine returned to Ukraine after a short time; it is hard to build a new life after a certain age), I check daily on mine. I’m not even sure… We all hate this war. And we’re all so damn tired. ## My Fellowship project: Exploring grassroots adoption of blockchain technology and other decentralized applications within the Ukrainian community Emerging tech has always fascinated me. And I believe everything comes down to people—when they connect and create a shared context. I began my work with a dream of laying the groundwork for an international education initiative for web3 adoption. Over the course of my Next Billion Fellowship, I completed a necessary first stage: uncovering what ordinary Ukrainians actually think about crypto and blockchain (if they think about the latter at all). I focused on documenting the state of the field as it is rather than as we wish it would be, and that was a lot of work itself. The research is divided into four not-so-rigid sections: Education, Community, Business, and Impact. Each section combines factual context, insights from interviews, and personal takes. Using narrative inquiry, the study explores how blockchain and crypto technologies are perceived, adopted, and adapted. I conducted 30 in-depth interviews with open-ended questions to capture authentic perspectives, and gathered additional insights from other materials and platforms. This is not a quantitative study, but a collection of individual perceptions and experiences. Ethics were a priority: participation was voluntary and no interviews were recorded to ensure comfort and equality. Consent was obtained for all the materials used, ensuring the research reflected the community's realities without causing harm. My goal is to offer readers a snapshot of Ukraine’s Web3 landscape from the people’s perspective. Whether someone has 3 minutes or 3 hours to engage, the aim is to provide context and spark future synergies. It lives here: [https://uadoption.super.site/](https://uadoption.super.site/) When I put everything together, I felt a little better about what’s ahead, realizing there’s still something to hold on to. >*“Ukraine's competitive edge lies in its people, talent, and high adoption rates. Add to that a remarkable openness to collaboration—Ukrainians are driven to work, compelled by circumstances, and ready to do even more.”* >— **Social entrepreneur** Building a digital future feels like both my country’s way of last resort and a path full of immense promise. For Ukraine, it might be that those two are one and the same. ### Reflections Not long ago, a reflection from a mirror ball swinging at a local coffee shop flashed me back to 2021. It now feels like a different reality. I can’t believe it’s been three outrageous years. And I have no idea what the future will be like in the next three. Writing this took way longer than I planned. I kept putting it off, feeling that the work was incomplete and that i had no clear conclusions. But then it hit me: that’s exactly the point. This is the most honest reflection of what’s happening. It will come down to people: their spirit, their resilience, and their collaboration. There is no final answer because the story is still being written.
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Griffin Ichiba Hotchkiss
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