Hello dear readers, I would like to share with you the progress that Ukraine is making in terms of updating its economic and financial system, considering that in the current context of war and crisis the Ukrainian state will create its digital currency.

According to information published in the main Ukrainian news media, the National Bank of Ukraine took another step on the way to the creation of its own digital currency, the e-grivna, in a context of war and crisis, the European country is aiming at the monetary instrument with which it seeks to digitize its economy.

The institution stated in a press release that the draft concept of the e-grivna is presented with the intention of receiving feedback from the banking, financial and virtual asset sector on Ukrainian soil.

The e-grivna is an electronic form of the monetary unit of Ukraine, which will be a direct obligation of the central bank. Its key purpose is to effectively perform all functions of money, complementing the cash and non-cash forms of the hryvna, the central bank states in its press release.

The e-grivna project is old. There was already talk of a cryptoasset based on the national currency of Ukraine since 2018, and last year studies were started by the central bank to determine the feasibility of large-scale issuance of the e-grivna.

The bank also notes that, hand in hand with the e-grivna, the market for virtual assets such as Bitcoin and cryptocurrencies could also develop its infrastructure with high quality on Ukrainian soil, as they intend that these will have a greater circulation from the issuance of the e-grivna.

SOURCES CONSULTED

Bank.gov.ua The NBU presented the draft concept of e-hryvnia to participants of the payment market and virtual assets market. Link

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The cover image was designed by the author: @lupafilotaxia, incorporating image: Cryptopolitan.