ukraine - Ukraine Could Launch a National Digital Currency

Ukraine Could Launch a National Digital Currency

Ukraine could be the next country in the list that will issue its own national digital currency. But… that does not mean that this is a cryptocurrency. The National Bank of Ukraine (NBU), said that it is considering the introduction of the digital version of its own national currency, the hryvnia. The currency will not be based in blockchain and will not be a decentralized as most of the other cryptocurrencies.

Ukraine’s National Digital Currency

The Ukrainian Central Bank has uploaded a Facebook post saying that it is analysing new innovative technologies included a digital version of the hryvnia. The intention is to move towards a cashless economy in which the hryvnia will be used in a digital way.

The NBY explained:

“However, the National Bank would like to specify that what is meant here is the possible introduction of an electronic hryvnia, not our own cryptocurrency.”

Using blockchain technology to back the e-hryvnia is still being discussed among the Ukrainian authorities. This technology would allow faster transaction times and a more reliable service.

Ukraine has neighbour countries that are using blockchain technology and plan to issue their cryptocurrencies. For example, Russia has announced that it is going to issue the CryptoRuble, which is not a digital version of the Ruble but a national cryptocurrency.

Belarus has been opening its economy for cryptocurrency investments. Several enterprises are investing in the eastern European country. Blockchain businesses have lower taxes than other enterprises, allowing the industry to flourish in the country.

Ukraine is also searching different ways to regulate cryptocurrencies. The National Security and Defence Council chief Oleksandr Turchynov said that the lack of regulation in the cryptocurrency market is a threat to Ukraine’s economy and security.

“The development of the cryptocurrencies market cannot be left out of the state’s attention,” reads the report of the Government of Ukraine. “The lack of external and internal control over the cryptocurrencies turnover and anonymity of payments create prerequisites for their use in order to legalize criminal assets, to pay for prohibited goods, in particular drugs and weapons, and provides for financing of terrorism, in particular, in the occupied territories of Ukraine.”

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