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On September 13, the National Bank of Ukraine (NBU) published an official statement on the main principles of monetary policies for the future year, encouraging the regulation of Bitcoin.
The Central Bank Of Ukraine Encouraging ‘Fair’ Bitcoin Regulation
The NBU highlighted that it acknowledges the importance of technical developments related to virtual assets and sees "many attractive prospects," such as enhancing access to financial services and promoting competition in the payments industry.
Cryptocurrencies such as Bitcoin (BTC), according to the NBU, have had little influence on Ukrainian monetary policy and financial stability due to their present “relatively limited” usage and considerable price volatility.
However, because the bank believes that continued acceptance growth would eventually make cryptocurrencies less volatile, the NBU will take specific steps to maintain financial stability.
As a result, the NBU would “pay appropriate attention” to the dangers of cryptocurrency's rapid growth, with a particular focus on private stablecoins, a kind of cryptocurrency tied to an underlying asset such as a fiat currency or a precious metal.
According to the bank, cryptocurrencies might eventually replace the national currency, resulting in the "development of parallel money circulation" outside of the NBU's supervision.
Other dangers include foreign capital outflows, money laundering issues, and the overall “displacing of traditional banking.”
To avoid these dangers, the NBU will aspire to guarantee that the Ukrainian hryvnia is the sole legal tender in the country, according to the authority, while also noting that the central bank will continue to promote cryptocurrency, declaring:
“The National Bank will work to establish a system that provides clear and intelligible state regulation, promoting the development of fair and efficient virtual asset circulation.”
The NBU Will Continue To Research The Worldwide Experience Of Creating CBDC
The NBU also stated that it will continue to research the worldwide experience of creating a central bank digital currency (CBDC).
As previously reported, Ukrainian President Volodymyr Zelenskyy approved legislation allowing the NBU to issue a CBDC in July 2021.
The announcement comes after the Ukrainian Verkhovna Rada adopted the draught bill “On Virtual Assets” on September 8, providing legal status to cryptocurrencies such as Bitcoin.
Although not recognizing Bitcoin as legal currency, the legislation permits crypto-based payments by converting crypto assets into fiat, according to certain government officials.