The National Bank of Ukraine opposed the total digitalization of the economy
Date: 2023-07-15 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The Central Bank of Ukraine believes that it is dangerous to refuse cash and does not know whether it needs a digital hryvnia
The National Bank of Ukraine (NBU) opposed the abandonment of cash for the sake of total digitalization of the economy. This is reported by Ekonomichna Pravda with reference to the NBU commentary. According to representatives of the Central Bank, the refusal of cash today is impossible "given martial law."
The NBU noted that in the current conditions, citizens of Ukraine should have access to cash "in order to be able to meet their basic needs even in the event of possible critical events." The financial regulator also noted that there is no single answer to the question of the need to issue an electronic hryvnia (e-hryvnia).
"It should be added that the decision on the expediency of large-scale issue of e-hryvnia in Ukraine has not been made to date," the NBU said.
So far, the regulator is testing the technological basis for issuing electronic money, as well as analyzing the potential consequences of issuing e-hryvnia on the country's financial stability. Details of testing were not disclosed.
The NBU has been testing the e-hryvnia since 2018. Since then, the Central Bank has issued less than ₴5500 in electronic form among the employees of the department itself, notes Ekonomichna Pravda. For all the time, the financial regulator conducted only a couple of hundred test operations with the e-hryvnia. It is expected that the NBU will make a decision on the e-hryvnia by the end of the first quarter of 2025.
Meanwhile, in September 2023, cryptocurrency may be legalized in Ukraine. According to the bill, citizens of Ukraine will have to pay 18% of investment profits and a military fee of 1.5%. The bill may come into force as early as 2024 if the Verkhovna Rada adopts it in September this year. However, representatives of the local crypto market doubt the adequacy of the interest rate.
The founder of the first bitcoin exchange in Ukraine, Kuna, Mikhail Chobanyan, noted that, taking into account the situation in the country, it makes no sense to discuss "even hypothetically a tax rate of more than 5%." According to Chobanyan, there are many other safe places in the world where you can pay with cryptocurrencies in the amount of 10%.
