Draft of e-hryvnia, future digital currency. Regulators are currently considering several potential applications for digital coins, including retail payments and cross-border payments.
Monetary Authority of Ukraine introduces E-hryvnia project to banks and companies
To representatives of presenting banks, other financial institutions and crypto market participants. The regulator is seeking feedback on the possible issuance of this version of the fiat hryvnia.
The main purpose of the e-hryvnia is to supplement the cash and non-cash forms of Ukrainian currency, the monetary policy regulator explained in a announcement released on Monday. did. The plan is to make it accessible to all segments of the population, legal entities, state institutions, banking and financial sectors.
The project started in September last year. Since then, NBU has explored the feasibility of large-scale issuance of digital currency. In a quoted statement, Deputy Chairman of the Bank Oleksiy Shaban emphasized that the development and implementation of the e-hryvnia could be the next step in the evolution of Ukraine’s payment infrastructure, saying: explained in detail.
[e-hryvnia] will support the digitization of the economy, greater prevalence of cashless payments, reduced costs, increased levels of transparency, and increased trust in the national currency in general. contribute to
In a meeting with stakeholders, the NBU presented the proposed design of the e-hryvnia, its architecture, features and advantages for payment service providers, including instant payment options. The bank took into account the findings of a survey of financial market experts on the demand for digital hryvnia carried out in 2021. Among them are the use of his CBDC for retail non-cash payments, targeted social and other government payments, and smart contracts.
Coins can also be used to facilitate the circulation of digital assets, including issuance, exchange, and other related operations. “The e-hryvnia could become one of the key elements of the qualitative infrastructure development of the Ukrainian crypto-asset market,” the central bank believes. It also enables cross-border payments, making them faster, cheaper and more transparent.
Ukraine has yet to comprehensively regulate the digital currency space. Last fall, Kiev’s parliament, the Supreme Rada, adopted the “Draft on Virtual Assets”, which in March 2022 was signed by President Volodymyr Zelenskyy into law with certain amendments he requested.
The country’s securities regulator was recently tasked with preparing tax law changes necessary to implement the law. Meanwhile, work has begun to update it according to EU standards on the ground. Ukraine has relied on cryptocurrency donations to fund defense and humanitarian efforts during its ongoing military conflict with Russia.
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