National Bank Of Ukraine To Adopt Cryptocurrency Based On National Currency Hryvnia

The National Bank of Ukraine is planning to unveil a state-supported cryptocurrency. It is working on a pilot plan to launch an electronic version of the national currency called Hryvnia or e-Hryvnia (electronic Hryvnia). The bank further states that if the project is successfully accomplished, it must be centralized and remain under government control.

The government of Ukraine has discussed the concept of creating its own cryptocurrency several times on the agenda of Cashless Economy. During the starting of 2018, the renowned financial institution disclosed its strategies and campaigns to launch e-Hryvnia that would not be based on blockchain technology. The bank believes that e-Hryvnia will boost the value of noncash disbursement.

According to the officials of the National Bank of Ukraine, the upcoming state-back cryptocurrency must be linked to the national fiat currency at a rate of 1:1. This linkage will coerce the growth of inflation rate. As far as the introduction of blockchain technology in it is concerned, it will be taken only after a detailed analysis.

The Ukraine Bank Association advisor, Alexey Kutsch believes that a cryptocurrency based on blockchain technology and also supported by the government is certainly a promising plan. It will indeed secure and safeguard the rights of the individuals when it comes to property. Alternatively, it will also reduce the cost and duration of transactions, and finally develop the nation’s overall revenue, as reported by The Currency Analytics. The news was initially covered by a local-based outlet Vesti Ukraine.

On the other hand, Ukraine’s parliament had raised a proposal to pass a tax bill for the crypto assets. The proposal also suggested a 5 percent tax on the individuals and legal entities working with crypto including 18 percent tax for crypto-associated financial gains, Economics Unian noted.

As far as the launching of cryptocurrency is concerned, the National Bank of Ukraine will undergo systematic and meticulous assessment before accomplishing such project. Kutsch said that this type of currency cannot be compared to the usual crypto coins like BTC and ETH.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Having over 11 years of experience in Journalism, Subhro has become fascinated by cryptocurrency over the last couple of years.

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