Ukraine’s central bank has indicated a fair approach to BTC

We have only recently informed you of speculation that Ukraine could be within two years to make BTC next legal tender next to the Ukrainian hryvnia. Today, other reports are coming from Eastern Europe, confirming that Ukraine is becoming a BTC-friendly country.

This time, the Central Bank of Ukraine commented on BTC and cryptocurrencies as such, which in its communiqué on monetary policy for next year indicated special attention to the regulation of cryptocurrencies. Bank emphasized the importance of technological innovation associated with virtual assets and said that she saw “many promising opportunities” in cryptocurrencies, from improving access to financial services to increasing competition in the payments market.

Ukraine’s central bank also said it did not see BTC as a risk to the Ukrainian economy, given that it currently has a relatively limited adoption rate and high price volatility. Nevertheless, given the expected decline in BTC volatility in the coming years, it announces that it will take some precautionary measures.

In the meantime, it wants to closely monitor the risks related to private stablecoins that are tied to fiat currencies or other underlying assets, but their functionality and stability is the responsibility of private companies. In their case, the central bank is afraid of a kind of parallel circulation of money that will not be under its control.

A few days ago, Russian financial expert and professor of economics Vyacheslav Evgenyev said in an interview with CityAM.com that Ukraine was working to make BTC legal tender. In his opinion, this could happen as early as 2023. He supported these claims with information that financial experts from Ukraine visited El Salvador and Ukrainian President Volodymyr Zelensky was in contact with President Naiyba Bukele. However, the Ukrainian central bank did not confirm these rumors and stated that in its efforts it will be that the Ukrainian hryvnia will remain the only legal tender in the country.

Ukraine is a country where cryptocurrencies are very popular. It is estimated that it owns over 700,000 civil servants. Among them are many politicians, and the 43-year-old President Zelensky is said to be a fan of cryptocurrencies. He should sign a new law on the legalization of cryptocurrencies in the coming weeks, which was approved by parliament in early September.