- Ukraine central bank prohibits crypto as legal tender.
- Governor Pyshnyy emphasizes monetary sovereignty.
- New law allows holding crypto in reserves.
Ukraine’s central bank governor, Andriy Pyshnyy, has reaffirmed that cryptocurrencies will not be recognized as legal tender, marking it a ‘red line’ for monetary sovereignty and stability.
This stance impacts crypto policy in Ukraine, aligning with EU regulations and maintaining the hryvnia as the sole legal tender, affecting market perceptions and regulatory discussions.
Ukraine’s Central Bank Ruling on Crypto
Ukraine’s central bank firmly declares cryptocurrencies unacceptable as legal tender. Led by Governor Andriy Pyshnyy, the aim is to safeguard monetary sovereignty and ensure the hryvnia remains the sole legal currency.
The decision emphasizes that virtual assets cannot be used for payments, nor challenge existing monetary tools. Pyshnyy’s leadership strongly supports these prohibitions to maintain economic stability. Pyshnyy commented, “It is important for us that our ‘red lines’ are strictly upheld. Virtual assets cannot serve as a means of payment, nor can they in any way undermine the effectiveness of our monetary policy tools. There must be no transfer of monetary powers and no weakening of the NBU’s capabilities as a result of virtual asset legalization” (source).
Impact on the Crypto Market
This stance affects the crypto market in Ukraine, limiting the transactional use of cryptocurrencies like BTC and ETH. Despite substantial crypto donations during the war, the official legal tender remains unaffected.
The law enabling the National Bank of Ukraine to hold crypto in reserves prompts debates over volatility versus diversification. These measures reflect a focus on internal control and economic compliance.
Alignment with EU Regulations
Ukraine aligns with EU regulations, maintaining a clear separation between regulatory actions and tender status. Public reaction in developer and financial communities remains cautious as economic policies unfold.
Insights suggest potential outcomes include tighter crypto regulations and the possible future development of an e-hryvnia. These efforts aim to strengthen Ukraine’s financial framework against global trends. For more details on the financial legislative environment, refer to Ukraine’s Bill on Financial Services and Payments.
