National Bank of Ukraine to Launch a State-backed Crypto That Will Tied Traditional Currency

National Bank of Ukraine to Launch a State-backed Crypto That Will Tied Traditional Currency

September 27, 2018 Off By Maheen Hernandez

Vesti Ukraine, a local-based news outlet reported a few days ago that NBU or National Bank of Ukraine has a plan of opening a state-owned cryptocurrency called e-hryvina that is based on blockchain technology.

The government of Ukraine, in fact, has introduced and talked about the idea of making their own digital currency many times already on the agenda of Cashless Economy.  In January, National Bank of Ukraine revealed strategies and campaigns to launch e-hryvnia which will not be based on blockchain system.

National Bank Ukraine in an interview stated that their blockchain-based digital currency needs to be centralized and stay under the management of the government.  E-hryvnia is anticipated to boost the value of non-cash disbursement, together with minimizing their expense.

Officials of the said bank commented that this type of digital asset needs to be tied to Ukraine fiat currency. This will put off the growing number of the inflation rate, they added. On the other hand, issuing a blockchain based digital coin remains in the preparation phases.

According to National Bank of Ukraine, the choice on the suitability and correctness of the opening of this digital coin in full will only be taken after a systematic and meticulous assessment.  Local news outlet stated that Alexey Kutsch,  Ukraine Bank Association advisor to the head, believes that this kind of digital currency is not comparable to the usual digital coins available like BTC and ETH, this is due to the fact that crypto is decentralized and anonymous by description, not like currency that is supported by the government.

Alexey also stated that a digital currency based on blockchain technology and backed by the government is indeed a promising plan. It will secure and protect the rights of the individuals when it comes to property. What is more, it can also minimize the time and costs of transactions. This new development will also accelerate the revenue of the country.

On the other hand, Russia recently revealed the plan of opening government-owned digital currency, and they name it CryptoRubble.  Ukraine Cabinet of Ministers on the Financial Stability Board conducted a conference to know the legal state of digital currencies, backing the idea of digital currency regulation.

A moment ago, Ukraine’s parliament had passed tax law for digital assets.  According to the tax bill, individuals and legal entities that are operating with digital currencies are required to 5% tax and 18% for earnings related to crypto.

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