Ukraine Central Bank Wants Crypto Legalization, But Not as Means of Payment: Governor

The National Bank of Ukraine (NBU) Governor Andriy Pyshnyy has outlined some of the prerequisites of crypto legalization, adding that, however, the asset class cannot become a means of payment in the nation.

In an interview with RBC-Ukraine, he called the use of crypto as a legal tender a “red line” for the NBU.

“It is important for us that our ‘red lines’ are clearly observed,” the governor said. “Virtual assets cannot be a means of payment, cannot in any way undermine the effectiveness of our monetary instruments.”

He stressed that due to legalization of crypto, there shouldn’t be a transfer of monetary powers or weakening of the regulator’s instruments.

Further, the governor warned that under martial law, crypto assets should not become a tool for circumventing currency restrictions.

“The legalization of virtual assets should also not undermine our effectiveness in ensuring financial monitoring; the legislation in this area should implement the norms of international FATF standards and relevant European regulations,” the NBU head added.

Governor Pyshnyy called for “the de-shadowing” of digital assets, which would have a positive impact on the reputation of the Ukrainian financial sector among international partners.

The NBU is experimenting the potential e-hryvnia architecture model and is currently preparing for a pilot project with a technological partner, the governor further noted.

Given Ukraine’s European integration course, special attention is paid to the development of the Digital Euro project.

“We want this pilot to give us as much information as possible to decide on a large-scale issue. At the same time, we are looking very closely at how the CBDC process is developing in other central banks,” Pyshny said.

Though it is too early to reveal any timeframe on the launch of an e-hryvnia, he said the NBU is already working with the European Central Bank, the Bundesbank, the Bank of Belgium, the Bank of France, and the Bank of Singapore.

In June, Ukrainian lawmakers proposed a draft bill that could allow the NBU to include Bitcoin and other crypto in its national reserves.

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