The National Bank of Ukraine announced to plan a digital fiat based on the ukrainian currency hryvnia. With the announced plan the bank aims to take a further step for the digital assets and reduce the ongoing circulation of cash money.
Ukraine’s major media outlet Vesti reported the representative of the National Bank stating: “We are studying ways in which an electronic hryvnia could potentially contribute to an increase in the number of non-cash settlements.” The spokesperson of the bank also added, that the “e-hryvnia” would be fixed on a 1:1 ratio to the national currency so that the release of the new fiat “would not bring about a spike in inflation.”
Nevertheless, the plans of the new digital currency are not completed yet, and that “after conducting a detailed analysis” the bank will make the final decision.
The government, national bank and financial authorities of Ukraine are showing more and more greenlights for the blockchain technology and cryptocurrency related matters. Earlier this year, Oleg Chury, the head of the country’s central bank told the reporters, that Ukraine was “on the verge” of the legal recognition of cryptocurrencies.
In 2017, Ukraine assigned a partnership with the world’s largest full-service blockchain technology company Bitfury, to develop blockchain based systems for wide range of the industries operating in the public sector. Valery Vavilov, the CEO of Bitfury said that the deal made between the company and Ukraine is “probably the largest of its kind anywhere.”
Author: Sarah Tuuli