The National Bank of Ukraine is reportedly considering a digital currency for the Ukrainian hryvnia currency. This can facilitate the exchange of digital assets, production and other operations.
The central bank has discussed its vision for an official digital currency or CBDC with representatives of banks, non-banking financial institutions and crypto markets based on an official report published today. Banks are currently in the phase of exploring non-cash retail payments, digital asset circulation and cross-border transactions as mediums of CBDC use.
"E-hryvnia can be one of the main elements of qualitative infrastructure development for the virtual asset market in Ukraine," the report said.
It should be noted that Ukraine has been studying CBDC since 2017, and is one of over 100 countries around the world exploring the issue of national digital currency. In July 2021, President Volodymyr Zelensky signed into law a bill that would allow the central bank to issue CBDCs that can be grouped into the same categories as cash or electronic money.
Last December, Tascombank, one of the country's oldest commercial banks, revealed plans to test an electronic hryvnia built on the Stellar network.
Further motivating the use of e-Hryvnia is the role of crypto during the geopolitical crisis that befell the country. This is where crypto has played a role in collecting donations and facilitating the purchase of critical supplies after Russia's invasion of the country in February.
The central bank of Ukraine also announced that they are "continuing to develop" the "e-Hryvnia" project with market participants and state bodies.
"At the same time, the National Bank, like most of the world's central banks, continues to issue its own CBDC with caution and taking into account, in particular, the potential impact of its introduction on the country's financial system".
