Ukraine is approaching the launch of e-hryvnia

At the recent Central Bank Digital Currencies conference, the National Bank of Ukraine (NBU) presented the e-hryvnia and discussed the resultstesting the first Ukrainian digital product.

Representatives of the central banks of Canada, Sweden,The Netherlands, Japan, Finland, Lithuania, Belarus, Uruguay and South Africa discussed the use of digital currencies in government payment systems at the CBDCinUA2020 conference.

Ukrainian blockchain company Distributed Lab andThe National Bank of Ukraine presented the guests of the conference the minimum viable product (MVP) of the e-hryvnia system. Guests could also try spending the e-hryvnia in test mode.

To participate in a pilot demonstration to participantsyou had to scan a QR code and download an electronic wallet to your smartphone. The wallet was automatically replenished with 10 e-hryvnia, which could be immediately exchanged for prizes. Representatives of the Distributed Lab believe that this form of presentation allowed not only to present and test the product, but also to collect user opinions about the convenience of using the currency.

Ukrainian bankers noted that e-hryvniais being developed as financial obligations that can be purchased for cash in a 1:1 ratio. The regulator is studying all possible models for issuing CBDC, not limited to blockchain technology. NBU employees previously stated that DLT technology does not have “fundamental advantages of use.”

Representatives of many central banks agree with them. It was noted more than once at the conference that blockchain – is not the only possible option for issuing a CBDC.

However, in addition to solving technical issuesand creating the necessary infrastructure, the state needs to solve the problem of regulating crypto assets. For now, the NBU is forced to take a time out from testing the first digital product while awaiting the necessary legislative framework. 

Let us remind you that recently the Ministry of Digitaltransformation of the economy published the Virtual Assets Manifesto, declaring a loyal regulatory policy regarding cryptocurrency. Officials believe that, in essence, the technology does not need government regulation and strict control.