The issue was part of ongoing testing of the ability to issue a national electronic currency (e-rate) on the basis of the blockchain.
As reported on the official website of the National Bank of Ukraine, in the framework of the project we have studied the international experience in this field, researched legislative issues, economic impact and studied the best options for the electronic circulation of the hryvnia. On the website it is noted that the question of issuing its own cryptocurrency studied by Central banks around the world.
In parallel with theoretical study in the framework of the national Bank examined and its practical side. During testing, the blockchain platform was made issue electronic hryvnia to a limited extent. Transactions using the digital currency has been tested in several working groups with the participation of the NBU, companies, volunteers, and the world Bank. The Central Bank of Ukraine notes that world Bank experts advised the national Bank for technical support.
As noted on the website of the Central Bank of Ukraine, according to the test results, the Bank came to the conclusion that e-torque can be considered as an alternative to the existing retail payment instruments. However, as part of the testing studied only a limited list of transactions in a small number of users, it is impossible to say with confidence about the potential level of involvement of inhabitants of the country in the use of electronic currency.
An important conclusion was also that the implementation of e-hryvnia can be done in two ways: centralized or decentralized. In the centralized model, the NBU is the sole Issuer of electronic hryvnia, and other market participants will perform the agent’s functions. If will apply the decentralized model, the banks and non-Bank financial institutions will be able to produce the e-local under the control of the NBU.
The test results were commented by the Deputy Chairman of the National Bank of Ukraine Serhiy Cold. He said:
“Our research gave us not only practical experience, but also to put in front of the National Bank of new issues. What will be the impact of this instrument on the ecosystem of the payment market? Will there be sufficient demand for e-national currency by the users, traders and market participants? What technology should be used? What should be the level of anonymity of transactions with e-hryvnia? Today the exact answers to these questions should provide not only we but other Central banks of the world.”
He added that the national Bank will continue to explore the possibility of issuing e-the hryvnia, the current needs of the market and its potential impact on the economy.
Last fall, for the first time appeared the information that the Central Bank of Ukraine is considering the issuance of a national digital currency.