28.11.2021

The Central Bank of Ukraine has identified the priority options for using the digital hryvnia

The National  Bank of  Ukraine  presented the  results of a survey of  market participants regarding the  potential  demand for  digital hryvnia.

The most promising option for the digital currency of the central bank (CBDC) of Ukraine would be a currency for retail non-cash payments. This is the conclusion made by the National Bank of Ukraine by interviewing market participants.

For example, respondents believed that peer-to-peer payments between individuals and e-commerce transactions would also be a priority.

The second most popular was the digital hryvnia for social payments. Moreover, in this case, the state pays targeted social payments to citizens in the digital hryvnia. In addition, social currency can be programmed for specific purposes or specific times.

In last place was the digital hryvnia for settlements on  securities  and  other financial  instruments. For example, citizens could get direct access to the market of non-bank financial institutions, the National Bank of Ukraine notes.

Survey results by questions

Least of all respondents were interested in the following scenarios for using digital hryvnia:

  • For corporate settlements between legal entities.
  • For cross-border payments.
  • Profitable financial instrument.

However, the results of the survey do not yet mean that the National Bank of Ukraine will create exactly the CBDC that the respondents spoke for. The regulator intends to continue exploring the potential use of digital currency.

Recall that at the end of June, the Council of the National Bank of Ukraine called on the Cabinet of Ministers and the National Bank itself to speed up the preparation of bills on the regulation of cryptocurrencies. Moreover, the board of the National Bank was obliged to analyze how transactions with cryptocurrencies affect the activities of central banks until December 1, 2021.

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