The National Bank of Ukraine (NBU) recently opened up on the subject of cryptocurrency trading and adoption in the region. The NBU officials claimed that the mass adoption of a digital asset is crucial to decrease the amount of volatility in the region. Adhering to this belief system, the NBU has also adopted a favourable law regarding crypto market regulations this month.
Recently, the NBU formally issued a public statement and policy charter related to the matter of national monetary strategy in the upcoming year. The main agenda of the charter concerned itself with cryptocurrency regulations. Furthermore, the central bank also made a point in acknowledging the importance of blockchain as a major technological innovation.
The NBU media briefing shows that Bitcoin trading has not become very popular in the region thus far. The bank representatives claimed that due to the high price volatility of cryptocurrencies, the local fiat currency, i.e. hryvnia, has not experienced a diverse impact. The bank experts also claimed that centralized authorities in the region need to introduce specified policies for crypto trading as soon as possible.
The media briefing emphasized on focusing on the importance of a renewed monetary policy directed at digital asset markets. The NBU analysts also seemed focused on the use of blockchain technology for issuing personalized tokens. This token is going to be tied to the national capital reserves or the fiat currency in the region, according to the media reports.
Central Bank Is Working On Developing CBDC
Back in July this year, President Volodymyr Zelenskyy signed on the law to allow the central bank to work on a CBDC. The central bank of Ukraine, on the other hand, has been reportedly working on researching the effects of CBDCs in other countries. Meanwhile, the NBU has been making an effort to avoid the parallel money emergence by securing hryvnia as the sole legal tender in the country.
In addition, the parliament of Ukraine or the Verkhovna Rada has recently passed a bill for Virtual Assets adoption in September. By the decree of this bill, cryptocurrencies like Bitcoin can get legal recognition in the country. This has allowed the citizens of Ukraine to convert their crypto holdings into fiat, as interpreted by some of the government officials.
