As Russia’s invasion of Ukraine drags on, cryptocurrency exchange Binance is releasing a crypto debit card that the company says is intended for the 11 million people who have been displaced.
The company will give refugees approved for the card a monthly $75 for three months in its stablecoin Binance USD, which the card will automatically convert to local currency during a purchase. The card is free, but refugees will need to verify their identity and use an existing Binance crypto wallet with a Ukrainian address or register a new account with an address from Ukraine, even if they have fled the country, according to the company.
The world’s largest crypto exchange is working with European payments company Contis to launch the card, which can be used in any country in the European Economic Area.
The “Binance Refugee Crypto Card” is the company’s latest effort to help those affected by the war in Ukraine, even as crypto as a whole has been criticized as a workaround that some claim has helped sanctioned Russians avoid economic targeting by the West.
“At such a difficult time for Ukraine, it’s clear that cryptocurrencies are useful as they offer a fast, cheap, and secure way of transferring funds to help people with their urgent financial needs,” said Helen Hai, head of Binance Charity, in a press release.
Binance committed to donating at least $10 million through its Binance Charity Foundation in February to help children and families in Ukraine and those who have fled to neighboring countries. The millions will be directed to charitable organizations like UNICEF, UNHCR, the UN Refugee Agency, iSans, and People in Need, according to a company press release. The crypto exchange also created a cryptocurrency crowdfunding site that has raised about $1 million to support Ukraine.
Other cryptocurrency companies like Bahamas-based FTX have also recently stepped up efforts to help those affected by Russia’s invasion. In late February FTX gave $25 to every one of its Ukrainian users, according to CEO Sam Bankman-Fried.
“Do what you gotta do,” Bankman-Fried said in a tweet at the time.
As for Binance’s crypto card, it is another example of a benefits of cryptocurrency, of which proponents of the technology say are many. Some nonprofit organizations, private citizens, and the Ukrainian government have started accepting crypto in an effort to quickly receive funds that aren’t complicated by ties to third-party companies like banks.
The Ukrainian parliament passed a law in February that legalized cryptocurrency. The country has the highest rate of crypto adoption in Europe and ranks fourth in terms of crypto adoption worldwide, according to blockchain research company Chainanalysis.
At the same time some like, U.S. Sen. Elizabeth Warren, have argued that cryptocurrencies are actually aiding Ukraine’s invaders by giving sanctioned Russian leaders and oligarchs the ability to avoid western sanctions. Several industry players including the leaders of cryptocurrency exchanges Binance and Coinbase have rejected this claim.