Ukraina is on course to launch the e-hryvnia, as President Volodymyr Zelensky signed the On Payment Services law last week.
Ukraina is on course to issue a Central Bank Digital Currency (CBDC), the e-hryvnia, after President Volodymyr Zelensky signed the 'On Payment Services' law last week.
Work on a Ukrainian CBDC started in 2019, following a National Bank of Ukraine survey about the possible introduction of a digital currency in the country.
“The NBU will have the right to issue the 'digital currency of the National Bank of Ukraine', as well as create a regulatory 'sandbox' - a platform for testing services, technologies and tools in the payment market based on innovative technologies. Its functioning presupposes close interaction of the regulator with startups and understanding of their needs”, according to the new bill.
The law was signed after the survey, targeting 100 experts of the financial market of various expertise, revealed a keen interest in using e-hryvnia for virtual asset transactions.
Uses for e-hryvniaThe most promising use case for e-hryvnia is for retail cashless payments, mostly Р2Р transfers and e-commerce. The second use case, according to the number of points scored, is for cross-border payments, again mainly P2P, according to the report.
Most surveyed experts also stated that e-hryvnia should be based on blockchain technology. “Considering the volume of the virtual asset market in Ukraine and similarity of technologies, the NBU considers that using e-hryvnia for virtual asset circulation is to be further examined”, said the report.
Open bankingThe law also creates conditions for the introduction of the concept of open banking in Ukraine, which should unite various payment service providers and technology platforms into a single payment ecosystem. It is planned that open banking will start operating in Ukraine in 2023.
In addition, in order to minimise cyber fraud, liability for illegal actions with payment instruments and means of access to bank and payment accounts, as well as requirements for the security of payment transactions, will increase, and payment service providers will need to use enhanced user authentication in certain cases..(Source:CurrencyCom) Tell us what's your opinion below and start discussion regarding CBDC for a country's
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