Central Bank of Ukraine promotes “fair” Bitcoin regulation

After the Ukrainian Parliament passed an important cryptocurrency law in early September, the Central Bank of Ukraine has taken action to support the development of the cryptocurrency industry.

National Bank of Ukraine (NBU) release On September 13, an official statement on the basic principles of monetary policy for the coming year, with special attention to the regulation of cryptocurrencies.

The central bank emphasized that the NBU recognizes the importance of technological innovation related to virtual assets and sees “many promising opportunities” such as improving access to financial services and increasing competition in the payment market.

According to NBU, cryptocurrencies like Bitcoin (Bitcoin) Due to its current “relatively limited” level of adoption and high price volatility, it has so far had no major impact on Ukraine’s monetary policy and financial stability.

However, since the bank believes that the growth of further adoption will eventually reduce the volatility of cryptocurrencies, NBU will take certain measures to ensure financial stability. Therefore, NBU will “due care” to monitor the risks of rapid adoption of cryptocurrencies, especially private stablecoins, a cryptocurrency linked to underlying assets such as legal tender or precious metals.

According to the bank, cryptocurrency ultimately constitutes a potential risk of replacing the national currency and the emergence of “parallel currency circulation” outside the control of the NBU. Other risks include foreign capital outflows, money laundering issues, and “replacement of traditional banking” as a whole.

The authorities stated that in order to minimize these risks, the NBU will work to ensure that the Ukrainian hryvnia is the only legal tender in Ukraine, adding that the central bank will still be committed to promoting cryptocurrency at the same time, stating:

“The National Bank will strive to establish a transparent and easy-to-understand national regulatory system to promote the development of fair and efficient circulation of virtual assets.”

related: The Ministry of Ukraine considers the salary of the staff of the digital currency pilot

NBU also pointed out that it will continue to learn about the international experience of developing central bank digital currency (CBDC).As previously reported, Ukrainian President Volodmir Zelensky signed a law officially Enable NBU to issue CBDC July 2021.

The news was released after Ukraine’s Verkhovna Rada passed the draft “virtual assets” bill on September 8. Legal recognition of cryptocurrencies Like Bitcoin.Although Bitcoin is not recognized as legal tender, the legislation still allows By converting encryption-based payments According to some government officials, the conversion of encrypted assets into legal tender.