Cryptocurrencies to be reportedly adopted by the National Bank of Ukraine, sights set for the future

Cryptocurrencies as a whole have received another push towards mainstream adoption with the National Bank of Ukraine considering the creation of its own cryptocurrency based on the country’s national currency, the Hryvnia.

Announced by a Ukranian news outlet, the news was met with some positive response on social media with Ukranian natives expressing their sentiment on social media. Alicenow, a Reddit user commented:

“This move will ensure that corruption is reduced and the financial framework to reach a high point of stability.”

The proposed currency titled ‘electronic hryvnia’ will reportedly come under the ambit of the Ukranian national payment system. The officials at the bank have stated that the main aim of this move is to reduce the amount of fiat currency in circulation, a process that is getting more and more expensive. The e-hrynvia will work at an exchange ratio of 1:1 which is a step taken to not contribute to the economic inflammation.

Alexei Kushch, the Adviser to the head of the Association of Ukranian Banks stated:

“Many central banks are developing similar national currencies. Now the currency circulation in Ukraine functions in two spheres: it is cash and non-cash, that is accounts in banks. And with the help of Blockchain technology you can start the third form – digital. Digital money will also be on bank accounts, but will be recorded on an electronic wallet. At the same time, due to the Blockchain technology, money will be protected from fraud, hacker attacks and illegal withdrawal.”

The bank’s officials have also gone ahead and stated that the move is an opportunity for cryptocurrencies to grow in Ukraine, a country where the concept of digital assets is still in its nascent stages. Some financial experts within the nation have spoken about how the NBU move is not really the need of the hour.

Igor Lvov, a financial analyst within the Ukranian financial system has stated that people who are below the poverty line do not really care about the method of transaction of money but rather just need the entity for expenditure.

Although the news has already riled up the community in Ukraine, the officials have publicly stated that the decision is not fully formed with some integral parts of the process still up for consideration.

Kushch even added:

“An important difference between the cryptocurrency and digital money is that the latter are issued by financial institutions and are their obligations, which can be bought for cash. A cryptocurrency, for example, Bitcoin, can be obtained by mining, without putting any hryvnia in the bank”