Just a month after the start of Russia’s invasion of Ukraine in 2022, the Ukrainian government made an unconventional wartime decision: it legalised cryptocurrency. While elsewhere crypto is often seen as speculative, risky, or even funding crime, in Ukraine it became a vital part of the national resistance. So far, an estimated $212 million has been donated through cryptocurrencies like Tether, Ether, and Bitcoin.
At the same time, Ukraine’s traditional payment systems remained strong. Despite the war, cashless transactions made up 64.5% of all payments in the country. While cash still plays a role, digital payments are growing, putting Ukraine’s payments ecosystem on par with that of other developed economies, even under duress.
The lesson is clear; war doesn’t only happen in fragile states. It can reach highly developed, interconnected economies, such as places like Taiwan, Hong Kong, or the Middle East. And when it does, payment infrastructure becomes a key element of national resilience.
Payments in Wartime
Modern conflicts don’t shut down daily life the way they once did. Most are fought by small professional armies or insurgent groups, allowing many civilians to carry on with relative normalcy. This continuity relies heavily on functioning payment systems.
In times of turmoil, payments offer stability. They help governments maintain order, keep economies afloat, and let people buy food, pay rent, and access healthcare. But they also introduce difficult ethical questions. Cutting off access to financial systems can isolate bad actors but it can also cut off aid and basic survival tools for innocent people. Leaving systems open might help civilians but could also enable money laundering or the funding of violence.
This is why regulation is no longer a purely national issue. Anti-money laundering (AML) rules and know-your-customer (KYC) processes must be enforced across borders. These frameworks guard against abuse and protect both civilians and the reputations of payments companies caught in the crossfire.
Stable and well-regulated payments are no longer a luxury. In conflict zones, they are a lifeline.
The Industry’s Responsibility
The payments industry must prepare not just for cyberattacks or economic shocks, but for geopolitical instability and even warfare. That means building resilient systems with robust contingency planning. Companies should assess whether their infrastructure, employees, or customers are in potentially vulnerable regions and develop strategies to maintain services if conflict breaks out.
This might include embracing cryptocurrency, something that mainstream payments companies have been hesitant to do for decades. But in conflict zones, crypto often steps in where banks cannot. It’s decentralised, resilient, and accessible. Still, its benefits are double-edged. Crypto can also be used to sidestep sanctions, fund terrorism, or destabilise economies.
That’s why the payments sector can no longer ignore crypto or treat it as a lawless frontier. Especially with the rise of stablecoins that connect traditional and crypto finance, oversight and accountability are critical.
Expanding Access During Crisis
In emergencies, the ability to pay with cards or cash should be the baseline not the ceiling. People may lose access to bank accounts or physical wallets but still have mobile phones. Services like Apple Pay, Google Pay, and even Buy Now, Pay Later (BNPL) tools could be lifelines for the vulnerable. While BNPL has drawn criticism for being misused, in a crisis it could mean the difference between accessing food or going hungry.
Ultimately, “payments” should mean more than traditional methods. During times of disruption, the focus must be on expanding access and maintaining flexibility.
Payments as a Force for Good…or Harm
Payments companies didn’t sign up to operate in war zones. But in today’s volatile world, they can’t avoid the reality that their platforms can help or harm. Financial infrastructure has become a quiet, yet powerful front line in modern conflict.
With that power comes responsibility. In a world where war can arrive suddenly and stability can vanish overnight; the payments industry must adapt. Resilience, flexibility, and ethical clarity are no longer optional, they’re essential.
Scott Dawson, CEO at DECTA