In a report released on November 28, Ukraine’s apex bank presented the concept of the e-hryvnia, whose primary purpose is to replace both the cash and non-cash versions of the hryvnia, Ukraine’s national currency. The National Bank of Ukraine (NBU) unveiled a concept for the digital hryvnia, also known as the e-hryvnia, which is a prospective central bank digital currency (CBDC).
According to the National Bank of Ukraine, the e-hryvnia concept has been sufficiently researched. The CBDC project is being developed in close collaboration with government agencies, payment service providers, and other relevant stakeholders.
The National Bank of Ukraine (NBU) registered the trademark “e-hryvnia” with the Ukrainian Intellectual Property Institute in October 2022.
The central bank is developing three potential CBDC options based on key features and designs.
According to the National Bank of Ukraine, the first option specifies the e-hryvnia for retail non-cash payments with the potential functionality of programmable money through smart contracts. A retail e-hryvnia would allow the government to conduct targeted social transfers while reducing administrative costs.
According to the second CBDC option, the e-hryvnia would be used in transactions involving cryptocurrency exchange, issuance, and other virtual asset operations.
According to the report, the e-hryvnia has the potential to become one of the most critical components of quality infrastructure development for Ukraine’s virtual asset market.
The third option involves using the e-hryvnia to facilitate cross-border payments and provide faster, less expensive, and more transparent international transactions.
Oleksii Shaban, director of the National Bank of Ukraine’s payment systems and innovative development department, said:
“The development and implementation of the e-hryvnia can be the next step in the evolution of the payment infrastructure of Ukraine.”
Oleksii went on to say that a Ukrainian CBDC could help to ensure economic security, strengthen the state’s monetary sovereignty, and promote long-term economic progress.
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