- The Central Bank of Ukraine sees both good and bad in digital assets
- There are risks of hryvnia replacement
National Bank of Ukraine expressed your opinion on crypto assets. The NBU sees both pluses and minuses in the use of cryptocurrencies, but still, a skeptical approach prevails. It is due to the difficult economic and financial situation in the country, which has developed due to the Russian invasion.
In the first quarter of 2022, the NBU banned Ukrainians from buying crypto assets using the hryvnia and set a monthly limit of UAH 100,000. The ban also extended to international transactions. However, such rules are temporary and will be gradually relaxed as the country’s financial market normalizes.
The press service of the NBU reports:
“The National Bank is involved in building transparent and understandable regulation, which will contribute to the development of virtual assets. These restrictions were necessary for Ukraine to stabilize the situation on the foreign exchange market and maintain macro-financial stability.”
The NBU drew attention to the risks. First of all, there is a threat of “substitution of the national currency and the emergence of parallel money circulation.” Such a situation is quite possible, especially during martial law, when many funds are beyond the control of the regulator.
“This may pose a threat to the monetary sovereignty of the state. To minimize such risks, especially during a full-scale war, the National Bank will take a firm stand to prevent narrowing the scope of the hryvnia as the only legal tender in Ukraine,” the NBU spokeswoman said.
But even despite such risks, the country has a positive attitude towards technological innovations that are somehow connected with cryptocurrencies. Representatives of the NBU believe that virtual assets can improve access to financial services and compete in the field of payment services. They also remembered the crypto donations that helped Ukraine in early 2022.