Amid war and financial uncertainty, Ukraine begins the process of legalizing digital assets. This initiative reflects hopes for innovation but also elements of caution.
NBU’s Position: Regulate but Don’t Normalize as Currency
NBU Governor Andriy Pyshnyy recently emphasized that digital assets like Bitcoin can become part of the legal financial landscape, but should not be used as everyday money.
> "Crypto assets must not undermine monetary sovereignty," Pyshnyy stated. > "We support their legalization but firmly oppose their use as a means of payment."
This position solidifies the country's intent to adopt crypto without disrupting the role of the hryvnia.
e‑Hryvnia in the Making: Ukraine’s CBDC Pilot
Alongside its crypto policy, the central bank is piloting its central bank digital currency (CBDC), the e‑hryvnia. The NBU is working with an undisclosed technology partner to test the architecture of the digital hryvnia.
The pilot includes cooperation with the ECB, Bundesbank, Bank of France, and others. Though timelines remain unclear, officials hint that the pilot will help prepare Ukraine for a digital financial future on its own terms.
Despite supporting digital innovation, the NBU focuses on avoiding currency substitution, which is why crypto legalization in Ukraine remains limited in scope for now.
Crypto and Martial Law: A Delicate Balance
Since the war with Russia began, Ukraine has imposed strict currency controls. The government worries that crypto could allow citizens or institutions to bypass these restrictions.
The central bank made it clear that under martial law, it would not tolerate crypto acting as an unofficial monetary tool. This is a crucial element in the Ukraine crypto legalization debate, which involves both financial freedom and national security.
A senior NBU advisor added:
> "It’s not about banning crypto, it’s about protecting monetary integrity during wartime."
Crypto legalization in Ukraine is no longer a question of 'if' but 'how far.' The NBU's cautious approach shows its willingness to embrace blockchain technology while defending economic stability. The pilot for the e‑hryvnia and international collaboration signal a forward-thinking yet protective stance.
