Hot news: National Bank of Ukraine to support development of crypto industry

BIS, update, Ukraine

Key message: The National Bank of Ukraine (NBU) has decided to support the development of the crypto industry after the adoption of the law on cryptocurrencies. Thus, on September 13, the bank issued an official statement on the basic principles of monetary policy for the coming year. In this statement, it pays special attention to the regulation of cryptocurrencies.

National Bank of Ukraine

It is emphasized that the National Bank of Ukraine recognizes the importance of technological innovations that are associated with virtual assets, and the central bank adds that it sees many promising opportunities, such as improving access to financial services. According to the NBU, cryptocurrencies have not yet had a significant impact on Ukrainian monetary policy and financial stability. This is due to the relatively low adoption rate and high volatility. However, the bank believes that further adoption will mitigate volatility, so it will take some measures to ensure financial stability.

Although the bank believes that cryptocurrencies have not had a significant impact yet, it will still monitor their risks and will be particularly focused on stablecoins. Ultimately, the bank believes that cryptocurrencies may pose a risk in that they could eventually replace the national currency or create a parallel money circulation outside the NBU’s control. Other risks include foreign capital outflows or money laundering concerns. On this basis, the bank will seek to make the Ukrainian Hryvnia the only legal tender, but will also engage in the promotion of cryptocurrencies.

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