Fun

Central Bank of Ukraine Supports Crypto Industry, Fears Cryptocurrency

News Feed - 2021-09-23 07:09:17

Central Bank of Ukraine Supports Crypto Industry, Fears Cryptocurrency


The National Bank of Ukraine recognizes the benefits of endorsing crypto innovations but also fears cryptocurrencies could gain ground on the national fiat. Announcing its monetary policy guidelines for the near future, the regulator noted it’s going to defend the status of the hryvnia as the only legal tender in the country. Bank of Ukraine Won’t Let Crypto Replace Fiat Money


Under the current administration in Kyiv, Ukraine has taken steps to regulate its expanding crypto space. Earlier this month, the Ukrainian parliament adopted a law “On Virtual Assets” legalizing crypto-related activities and is now working on tax amendments pertaining to cryptocurrency transactions. President Volodymyr Zelensky designated the crypto market as a “development vector” of the nation’s digital economy.


Against this backdrop, the National Bank of Ukraine (NBU) has acknowledged that innovations associated with virtual assets, or cryptocurrencies, can improve access to financial services for Ukrainians while increasing competition among market participants, and also bring investments to the East European country. The regulator supports facilitating the growth of the nascent digital currency industry.


At the same time, the central bank sees certain risks in cryptocurrencies, its recently adopted “Basic Principles of Monetary Policies for 2022 and Medium-Term Perspective” revealed. According to the document quoted by Forklog, the spread of decentralized money may stimulate the outflow of funds from bank deposits into digital assets, endangering financial stability, and could increase evasion of financial monitoring.


Most of all, the NBU fears that cryptocurrency can potentially substitute the national fiat money, the Ukrainian hryvnia, leading to the “emergence of a parallel monetary circulation.” To limit these risks, the authority intends to prevent any restrictions on the use of the hryvnia as the exclusive legal tender in Ukraine as it’s also preparing to issue a digital version of the sovereign currency.


While noting that cryptocurrencies don’t have a significant impact on the government’s monetary policy and financial stability at present, the National Bank of Ukraine admits this is likely to change in the future. With technological progress and market expansion, growing awareness and investor interest, “the prevalence of virtual assets may increase significantly, and their price volatility may decrease,” the central bank concludes.


In an interview in August, Deputy Minister of Digital Transformation Oleksandr Bornyakov promised Ukrainians will be able to keep, trade, and spend cryptocurrencies. The government official pointed out that although the new legislation does not permit their use as a means of payment, it will be legal to pay with crypto through instant conversion to the hryvnia. Bornyakov added he expects to see a whole new market for intermediary services allowing digital coins to be stored, exchanged, and used in payments.


Do you think the National Bank of Ukraine will accept cryptocurrency as legal tender in the future? Tell us in the comments section below. Former Monero Developer Spagni Released From US Prison, Pledges to Address Fraud Allegations REGULATION | 9 hours ago US Treasury Targets Crypto Exchanges in Whole-of-Government Effort to Counter Ransomware REGULATION | 22 hours ago Tags in this story Central Bank, Crypto, crypto industry, crypto payments, crypto sector, crypto space, Cryptocurrencies, Cryptocurrency, Digital Currency, Fiat, hryvnia, legal tender, means of payment, national bank of ukraine, national currency, nbu, Payments, Ukraine, ukrainian, virtual assets


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Despite the Price Drop, Number of Bitcoin Held on Exchanges Continues to Slide
Despite the Price Drop, Number of Bitcoin Held on Exchanges Continues to Slide Roughly 49 days ago, the number of bitcoin held on exchange was around 2.503 million, according to st
Binance Coin Topples USDT to Become the Number Three Crypto After a 300% Price Surge
Binance Coin Topples USDT to Become the Number Three Crypto After a 300% Price Surge The Binance token has toppled the stablecoin Tether to become the third-larg
Gemini’s exit from Canada: What’s driving crypto exchanges out?
Helen Partz11 hours agoGemini’s exit from Canada: What’s driving crypto exchanges out?Gemini’s exit came just a few days after the Canadian Securities Administrators released an update to crypto trading firms about
How to capitalize on the Bitcoin halving
Tanuj Surve6 hours agoHow to capitalize on the Bitcoin halvingDiscover trading strategies to capitalize on Bitcoin halving events and optimize your investment returns in the cryptocurrency market.2144 Total views2 Total
Brian Quarmby3 hours agoBTC hodlers outperformed crypto funds by 69% in H1: 21e6 CapitalAccording to 21e6 Capital AG, crypto funds generally outperformed the price gains of BTC in previous bull runs, but they ultimately
LocalMonero exchange shuts down as crypto privacy services dwindle
Martin Young5 hours agoLocalMonero exchange shuts down as crypto privacy services dwindleMonero’s version of LocalBitcoins is closing after 7 years of operations serving the XMR community.1497 Total views10 Total share
Ghana Central Bank Reiterates Warning Against Practice of Pricing Goods in Forex
Ghana Central Bank Reiterates Warning Against Practice of Pricing Goods in Forex The Bank of Ghana has warned businesses and the public against the practice of demanding or making
Spot Solana ETF might 9x the price of SOL — GSR Markets
Brayden Lindrea4 hours agoSpot Solana ETF might 9x the price of SOL — GSR MarketsThe crypto market maker’s forecast for Solana was based on a “blue sky” scenario, while its “bear” scenario only predicted a 1.
48% of Ethereum Blocks Face Censorship From OFAC-Compliant Flashbots
48% of Ethereum Blocks Face Censorship From OFAC-Compliant Flashbots For a couple of years now, MEV-Boost relays or Flashbots have become popular tools in order to gather the maxim
Troubled Crypto Hedge Fund 3AC Reprimanded by Singapore’s Monetary Authority, Liquidators Eye Su Zhu’s Properties
Troubled Crypto Hedge Fund 3AC Reprimanded by Singapore"s Monetary Authority, Liquidators Eye Su Zhu"s Properties On Wednesday, it was reported that the crypto hedge fund Three Arr
Bitcoin’s Big Breakout? Fed’s “Not QE, QE” Just Flipped The Switch
Este artículo también está disponible en español. A fresh infusion of liquidity from the US Treasury General Account (TGA) is making waves among market observers, with so
Bitcoin, Ethereum Technical Analysis: BTC Starts the Week Above $28,000, as Global Banking Crisis Worsens
Bitcoin, Ethereum Technical Analysis: BTC Starts the Week Above $28,000, as Global Banking Crisis Worsens Bitcoin was trading above $28,000 on Monday, as cryptocurrencies extended