The National Bank of Ukraine is considering creating an electronic hryvnia that could be used for a variety of purposes, including the issuance and exchange of virtual assets.
According to a Monday official news statement, the central bank has spoken with representatives of banks, non-banking financial organizations, and the cryptocurrency market about its plans for an electronic version of the nation’s legal currency, the hryvnia. The bank is investigating potential uses for a CBDC in cross-border transactions, virtual asset circulation, and retail non-cash payments.
“E-hryvnia can become one of the key elements of qualitative infrastructure development for the virtual-assets market in Ukraine,” the report said.
A CBDC is being investigated by more than 100 jurisdictions worldwide, including Ukraine, which has been doing so since 2017. A statute allowing the central bank to issue a CBDC that can be classified in the same category as cash or electronic money was signed into law by President Volodymyr Zelensky in July 2021.
One of the oldest commercial banks in the nation, Tascombank, disclosed plans to test an electronic hryvnia built on the Stellar network last December.
After Russia invaded the nation in February, cryptocurrency started to play a part in raising money and making it easier to buy essential goods.
The central bank declared that it “continues to develop” the “e-hryvnia” project in collaboration with the market and government agencies.
“At the same time, the National Bank, like most central banks of the world, will approach the issue of issuing its own digital currency carefully and taking into account, in particular, the potential impact of its introduction on the financial system of the state,” the report said.
