Nikolas Sargeant
Ukraine's National Bank (NBU) Governor Andriy Pyshnyy has articulated a nuanced stance on cryptocurrency regulation, supporting legalization while establishing firm boundaries around digital assets' role in the country's monetary system.
Speaking with RBC-Ukraine, Governor Pyshnyy emphasized that cryptocurrency adoption must not compromise the central bank's monetary authority or undermine existing financial instruments. This balanced approach reflects Ukraine's ongoing efforts to modernize its financial sector while maintaining regulatory control.
Cryptocurrency Payment Prohibition Remains Firm
The NBU has established clear "red lines" regarding cryptocurrency's role within Ukraine's financial ecosystem. Governor Pyshnyy explicitly stated that virtual assets cannot function as payment methods or legal tender under any circumstances.
"Virtual assets cannot be a means of payment, cannot in any way undermine the effectiveness of our monetary instruments," Pyshnyy declared. This restriction ensures that cryptocurrency legalization won't transfer monetary powers away from the central bank or weaken its regulatory capabilities.
Under Ukraine's current martial law conditions, the governor stressed that crypto assets must not become tools for circumventing existing currency restrictions. This position reflects ongoing security concerns and the need to maintain financial stability during wartime.
The NBU governor also emphasized compliance with international standards, stating that cryptocurrency legislation must implement Financial Action Task Force (FATF) norms and align with relevant European regulations. This approach aims to strengthen Ukraine's financial monitoring effectiveness while meeting international compliance requirements.
Digital Hryvnia Development Advances
Parallel to cryptocurrency regulation discussions, the NBU is actively developing its central bank digital currency (CBDC) initiative. The bank is currently experimenting with potential e-hryvnia architecture models and preparing for a comprehensive pilot project with technological partners.
Governor Pyshnyy revealed that Ukraine's European integration trajectory significantly influences their CBDC development approach, with particular attention paid to the European Central Bank's Digital Euro project.
"We want this pilot to give us as much information as possible to decide on a large-scale issue," Pyshnyy explained, noting the NBU's collaborative monitoring of CBDC development across other central banks worldwide.
The NBU has established partnerships with several prominent European financial institutions, including the European Central Bank, Bundesbank, Bank of Belgium, Bank of France, and Bank of Singapore, to support e-hryvnia development efforts.
While specific launch timeframes remain undetermined, these international collaborations demonstrate Ukraine's commitment to creating a robust digital currency framework aligned with global best practices.
Governor Pyshnyy concluded by advocating for "de-shadowing" digital assets, arguing that proper regulation would enhance Ukraine's financial sector reputation among international partners and support broader economic modernization goals.
