What will be the digital national currency? The options considered by the NBU

What will be the digital national currency? The options considered by the NBU

The national Bank of Ukraine (NBU) is considering the launch of state of the digital currency based on blockchain technology.

The NBU said that the hryvnia based on the blockchain, or the electronic torque should be centralized and be under the control of the government. It is expected that digital currency backed by the government, will increase the number of cashless payments, and reduce their cost.

This is not the first time in Ukraine the question of the establishment of a digital national currency. The idea was first expressed in the framework of the project “Cashless economy”. For example, the Central Bank in January announced plans to launch e of the hryvnia, which is not bound and does not use the blockchain technology.

According to Bank officials, this version of Ukrainian state coins must be tied to the national currency 1: 1. According to NBU, it will prevent inflation. However, the electronic edition of the hryvnia based on blockchain technology, the whole still remains one of the options.

The decision about the feasibility of introducing electronic hryvnia in full will be taken only after detailed analysis.

Adviser to the head of the Association of Ukrainian banks Alex Kusch believes that digital currency such as e-national currency, cannot be compared with cryptocurrencies, since the latter is anonymous and decentralized, by definition, in contrast to the national currency.

Kusch also said that digital currency supported by the government and based on the blockchain is “quite promising”, adding:

On the one hand, it will protect human rights from the point of view of ownership, and on the other – will significantly reduce the cost and time of the transaction, as well as increase the circulation of money in the country.

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