Western sanctions have forced beleaguered Russian journalists to turn to cryptocurrencies to keep their operations running.
In the days following Russia’s invasion of Ukraine, readers of the prominent independent Russian-language news site Meduza began complaining that payments were not going through.
Western sanctions against Russia now prevented payments firm Stripe from servicing Russian-based readers of the Latvian-based outlet, their primary source of revenue. Now the news outlet has become dependent on alternative sources of funding, including cryptocurrencies.
Western sanctions “destroying” crowdfunding
“We couldn’t predict that the sanctions of Western governments will come first and destroy our crowdfunding,” said Ivan Kolpakov, editor-in-chief of the outlet that lost about a third of its traffic after the restrictions.
While the site previously relied on donations from some 30,000 Russian readers, the restrictions have forced it to solicit funds from an international audience for the first time.
Crypto donations
The donations page of the website is asking for contributions in dollars, euros, and crypto, and includes instructions on how to purchase bitcoin and Ethereum on Binance.
A step-by-step guide for how to send untraceable payments through Monero is also available for contributors concerned with anonymity.
Meduza is currently raising only half of what it needs to develop, according to Kolpakov, who declined to disclose how much is brought in by donations.
According to on-chain data, wallets listed on Meduza’s website held BTC and ETH worth around $230,000 at current prices.
Crypto in Russia
While the Russian state has either shuttered or exiled independent journalism, with threats of 15 years in prison for reporting against the official narrative of the war in Ukraine, it has also turned to cryptocurrencies to contend with sanctions imposed by the West.
Last month, Russian news outlet Kommersant revealed that the Ministry of Finance had been working on draft legislation that would legalize the use of cryptocurrencies in Russia.
According to reports, the bill would seek to make crypto a recognized payment unit and an investment asset. Meanwhile, Bank of Russia Governor Elvira Nabiullina told the nation’s lower house of parliament that a central bank digital currency capable of international settlements would be possible by next year.
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