{"id":12439,"date":"2021-09-23T10:54:03","date_gmt":"2021-09-23T10:54:03","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/central-bank-of-ukraine-supports-crypto-industry-fears-cryptocurrency\/"},"modified":"2021-09-23T10:54:03","modified_gmt":"2021-09-23T10:54:03","slug":"central-bank-of-ukraine-supports-crypto-industry-fears-cryptocurrency","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/central-bank-of-ukraine-supports-crypto-industry-fears-cryptocurrency\/","title":{"rendered":"Central Bank of Ukraine Supports Crypto Industry, Fears Cryptocurrency"},"content":{"rendered":"

The National Bank of Ukraine recognizes the benefits of endorsing crypto innovations but also fears cryptocurrencies could gain ground on the national fiat. Announcing its monetary policy guidelines for the near future, the regulator noted it\u2019s going to defend the status of the hryvnia as the only legal tender in the country. <\/strong><\/p>\n

Bank of Ukraine Won\u2019t Let Crypto Replace Fiat Money<\/h2>\n

Under the current administration in Kyiv, Ukraine has taken steps to regulate its expanding crypto space. Earlier this month, the Ukrainian parliament adopted<\/a> a law \u201cOn Virtual Assets\u201d legalizing crypto-related activities and is now working on tax amendments pertaining to cryptocurrency transactions. President Volodymyr Zelensky designated<\/a> the crypto market as a \u201cdevelopment vector\u201d of the nation\u2019s digital economy.<\/p>\n

Against this backdrop, the National Bank of Ukraine (NBU<\/a>) has acknowledged that innovations associated with virtual assets, or cryptocurrencies, can improve access to financial services for Ukrainians while increasing competition among market participants, and also bring investments to the East European country. The regulator supports facilitating the growth of the nascent digital currency industry.<\/p>\n

At the same time, the central bank sees certain risks in cryptocurrencies, its recently adopted \u201cBasic Principles of Monetary Policies for 2022 and Medium-Term Perspective\u201d revealed. According to the document<\/a> quoted by Forklog, the spread of decentralized money may stimulate the outflow of funds from bank deposits into digital assets, endangering financial stability, and could increase evasion of financial monitoring.<\/p>\n

Most of all, the NBU fears that cryptocurrency can potentially substitute the national fiat money, the Ukrainian hryvnia, leading to the \u201cemergence of a parallel monetary circulation.\u201d To limit these risks, the authority intends to prevent any restrictions on the use of the hryvnia as the exclusive legal tender in Ukraine as it\u2019s also preparing to issue a digital version<\/a> of the sovereign currency.<\/p>\n

While noting that cryptocurrencies don\u2019t have a significant impact on the government\u2019s monetary policy and financial stability at present, the National Bank of Ukraine admits this is likely to change in the future. With technological progress and market expansion, growing awareness and investor interest, \u201cthe prevalence of virtual assets may increase significantly, and their price volatility may decrease,\u201d the central bank concludes.<\/p>\n

In an interview<\/a> in August, Deputy Minister of Digital Transformation Oleksandr Bornyakov promised Ukrainians will be able to keep, trade, and spend cryptocurrencies. The government official pointed out that although the new legislation does not permit their use as a means of payment, it will be legal to pay with crypto through instant conversion to the hryvnia. Bornyakov added he expects to see a whole new market for intermediary services allowing digital coins to be stored, exchanged, and used in payments.<\/p>\n

Do you think the National Bank of Ukraine will accept cryptocurrency as legal tender in the future? Tell us in the comments section below. <\/em><\/strong><\/p>\n

Bitcoin News
\nRegulation, Central Bank, Crypto, crypto industry, crypto payments, crypto sector, crypto space, Cryptocurrencies, Cryptocurrency, Digital Currency, Fiat, hryvnia, legal tender, means of payment, national bank of ukraine, national currency, nbu, Payments, Ukraine, ukrainian, virtual assets<\/p>\n","protected":false},"excerpt":{"rendered":"

The National Bank of Ukraine recognizes the benefits of endorsing crypto innovations but also fears cryptocurrencies could gain ground on the national fiat. Announcing its monetary policy guidelines for the near future, the regulator noted it\u2019s going to defend the status of the hryvnia as the only legal tender in the country. Bank of Ukraine…<\/p>\n","protected":false},"author":0,"featured_media":12440,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-12439","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12439"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=12439"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12439\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/12440"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=12439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=12439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=12439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}