Representatives from banks, other financial institutions, and participants in the cryptocurrency market have been given a draught concept for the National Bank of Ukraine’s (NBU) upcoming central bank digital currency (CBDC). The regulator aims to receive feedback concerning the potential issuance of the e-hryvnia.
According to a Monday announcement from the body that oversees monetary policy, the prime objective of the e-hryvnia is to supplement both cash and non-cash versions of the Ukrainian currency. All societal groups, businesses, government agencies, and the banking and financial industries will have access to it.
The initiative began in September of last year. Since then, the NBU has been examining whether a large issuance of the digital currency is feasible. Oleksiy Shaban, the bank’s deputy chairman, stressed that the development and adoption of the e-hryvnia may be the next phase in the country’s payment infrastructure.
Shaban added that the e-hryvnia will aid in the economy’s digitalization, the expansion of cashless transactions, the lowering of their costs, the improvement of their degree of transparency, and the overall rise in confidence in the national currency.
The NBU presented the draught e-hryvnia design, architecture, features, and benefits for payment service providers, including the possibility for rapid payments, at the meeting with the interested parties. The findings of a 2021 survey of financial industry professionals on the demand for an e-hryvnia were taken into account.
Several potential e-hryvnia implementations are now being considered by the National Bank of Ukraine. Among them are the use of the CBDC for targeted social and other government payments, smart contracts, and retail non-cash payments.
The coin may also be used to ease the issue, exchange, and other associated activities that support the circulation of digital assets. Additionally, it can allow cross-border payments, which will speed up, reduce cost, and increase transparency.
