Ukraine’s central bank now authorized to issue MNBC

An imminent MNBC for Ukraine

The Ukrainian government is continuing its central bank digital currency (MNBC) projects, with the National Bank of Ukraine (BNU) now authorized to issue it.

Indeed, Ukrainian President Volodymyr Zelensky last Thursday signed a law entitled “On Payment Services”, officially allowing the country’s central bank to issue an MNBC, the digital hryvnia.

The bill regulates how payment services, especially digital ones, can be provided in Ukraine. The new legislation allows the BNU to set up some sort of regulatory “sandbox” to test its blockchain technology-based payment services and instruments.

👉 More info on central bank digital currencies (MNBC)

A collaboration between central bank and private companies

This law also requires close collaboration between the Ukrainian central bank and local companies in the payments market, taking into account the demand of the private sector. This in order to deploy the digital hryvnia across the entire local economic infrastructure.

Thus, this breakthrough should stimulate the development of financial technologies in the country, allowing private fintech companies to establish cooperation with banks, creating new business opportunities.

Recall that the National Bank of Ukraine has been studying the possibility of launching an MNBC since 2018. It even built a first prototype on the Stellar blockchain and published an optimistic report on the subject in 2019.

Ukraine appears to be on track to welcome blockchain as an exchange and payments solution in the near future via its highly anticipated MNBC. Will this step forward promote the integration of the cryptocurrency sector into the economic life of Ukrainian citizens?

👉 To read on the same subject: Ukraine: government employees hold $ 2.6 billion in bitcoins (BTC)

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About the author: Bela Le Tiec

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