Ukraine passed a new law that will put the central bank’s digital currency (CBDC) on the same level as other payment instruments in the country.
Ukraine strengthens CBDC
The Verkhovna Rada of Ukraine passed the law on payment services, making e-hryvnia the standard of payments.
However, CBDC has not yet been launched and is currently in the research and development phase. Despite this, as you can see, officials and politicians are increasingly interested in the digitization of their economy. This makes Ukraine one of the few countries that makes every effort to pass a law recognizing CBDC. Other countries may have more advanced CBDCs in terms of technology, but have yet to put digital currencies into effect.
Amendments to the Act on Payment Services only briefly mention CBDC, but pave the way for adoption that will follow the official release of the digital currency.
CBDC beyond our eastern border
Ukraine is considering issuing CBDCs from 2018. The authorities tested a prototype that was tested on the Stellar Lumens blockchain. On other occasions, the potential of CBDC was discussed and relevant experts were engaged and presented their thoughts on the subject.
In Europe, France, Sweden and the European Union itself are working on CBDC. Some pilot actions have already been undertaken as part of the work. All of these countries are well aware of the potential of creating a digital currency – for example, in reducing transaction costs and minimizing the fees associated with cross-border payments.
The actions of the EU or Ukraine are also an attempt to keep pace with other countries. For example, China is the farthest in the work on the issue of digital currency. It is possible that the e-yuan will hit the market this year. The goal of the government and central bank is to make China’s CBDC the official currency of the 2022 Olympics.
What is puzzling is the attitude of the USA. The power is not working on the digital dollar yet.
In turn, the Bank for International Settlements (BIS) spoke about CBDC and published documents related to such projects. It is indicated that today many central banks are working on the digitization of their currencies, but we will probably wait a few years for the fruit.