Ukraine Crypto Legalization: Central Bank’s Bold Stance on Digital Payments

Key Points

1. The NBU supports the legalization of cryptocurrencies as assets, allowing ownership and trading, but not as a payment method.

2. Using cryptocurrencies for payments could complicate inflation management, reduce interest rate policy effectiveness, and introduce systemic risks to Ukraine's financial system.

3. The NBU is developing the e-hryvnia, a central bank digital currency (CBDC), with a pilot project currently underway.

4. The NBU is collaborating with international central banks, including the European Central Bank and Bundesbank, to develop the e-hryvnia using global best practices.

5. The e-hryvnia is distinct from decentralized cryptocurrencies like Bitcoin, as it is a state-issued digital currency designed for stability and security.