The head of the National Bank of Ukraine, Yakov Smoly, said that the regulator is studying the possibility of issuing a domestic digital currency – the electronic hryvnia.
“Today, 80% of central banks in the world in one form or another are working with digital currency. And half of them have already moved from research to practical experiments. In addition, every tenth central bank is likely to issue its own digital currency for public use over the next three years. The National Bank of Ukraine decided to personally test such a technology and practically study the possibility of issuing its own digital currency – electronic hryvnia or e-hryvnia.” – Smoly said.
According to him, in 2018, the NBU conducted a successful pilot project on the circulation of cryptocurrency.
“And although we have completed the pilot project, we continue to strive to implement such innovative solutions. We continue to explore the possibility of issuing e-hryvnia, and we will be ready to return to this issue when we are convinced that we are not only able to realize this from a technological point of view, but that this will not interfere with the implementation of our mandate – ensuring price and financial stability” – noted the head of the NBU.
Smoly pointed out that digital currency can strengthen public confidence in the central bank and financial services. Indeed, unlike bank accounts, central bank money is completely risk-free and is 100% guaranteed – secured by the state. In addition, digital currency can help reduce the share of paper money in the country’s circulation.
“For many countries this is an urgent task, since the shadow economy quite often “feeds” on paper cash. Not to mention the high cost of servicing paper cash, its creation, transportation, storage and disposal” – Smoly emphasized.
Earlier, it was reported that the deputy head of the National Bank of Ukraine Oleg Churiy said that the NBU intends to lift foreign exchange restrictions for businesses subject to the approval of a new IMF program.
In 2019, the volume of private transfers (through official and informal channels) amounted to almost $ 12 billion from abroad to Ukraine.