The National Bank of Ukraine has announced its support for the legalization of cryptocurrencies as assets while imposing a strict ban on their use as payment methods. This initiative emphasizes the desire to ensure financial stability in the country.
Ukraine’s Stance on Crypto Legalization
NBU Governor Andriy Pyshnyy has endorsed the legalization of cryptocurrencies as assets, implying the possibility of ownership, trading, and potential taxation. The aim of this move is to integrate cryptocurrencies into the existing financial system under established regulations.
Ban on the Use of Cryptocurrency as a Payment Method
Despite the support for cryptocurrency legalization, Pyshnyy drew a firm 'red line' regarding their use as payment instruments. This ban, also known as a cryptocurrency payment ban, arises from the desire to protect the NBU's monetary policy. Using cryptocurrencies for payments could undermine control over the national currency, the hryvnia.
Developing the E-Hryvnia: Ukraine's New Steps
The National Bank of Ukraine is actively working on its own digital currency – the e-hryvnia. This central bank digital currency (CBDC) aims to combine the benefits of digital technology with the stability of the national currency. A pilot project is currently underway, and partnerships with technology providers are planned. This reflects the country's commitment to innovation in the financial sector.
Ukraine's cryptocurrency legalization is moving forward but with a clear distinction between assets and payment methods. The National Bank is demonstrating a balanced approach by embracing the e-hryvnia while safeguarding its monetary policy.
