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Cryptocurrencies to be reportedly adopted by the National Bank of Ukraine, sights set for the future

Akash Anand



Cryptocurrencies to be reportedly adopted by the National Bank of Ukraine, sights set for the future
Source: Unsplash

Cryptocurrencies as a whole have received another push towards mainstream adoption with the National Bank of Ukraine considering the creation of its own cryptocurrency based on the country’s national currency, the Hryvnia.

Announced by a Ukranian news outlet, the news was met with some positive response on social media with Ukranian natives expressing their sentiment on social media. Alicenow, a Reddit user commented:

“This move will ensure that corruption is reduced and the financial framework to reach a high point of stability.”

The proposed currency titled ‘electronic hryvnia’ will reportedly come under the ambit of the Ukranian national payment system. The officials at the bank have stated that the main aim of this move is to reduce the amount of fiat currency in circulation, a process that is getting more and more expensive. The e-hrynvia will work at an exchange ratio of 1:1 which is a step taken to not contribute to the economic inflammation.

Alexei Kushch, the Adviser to the head of the Association of Ukranian Banks stated:

“Many central banks are developing similar national currencies. Now the currency circulation in Ukraine functions in two spheres: it is cash and non-cash, that is accounts in banks. And with the help of Blockchain technology you can start the third form – digital. Digital money will also be on bank accounts, but will be recorded on an electronic wallet. At the same time, due to the Blockchain technology, money will be protected from fraud, hacker attacks and illegal withdrawal.”

The bank’s officials have also gone ahead and stated that the move is an opportunity for cryptocurrencies to grow in Ukraine, a country where the concept of digital assets is still in its nascent stages. Some financial experts within the nation have spoken about how the NBU move is not really the need of the hour.

Igor Lvov, a financial analyst within the Ukranian financial system has stated that people who are below the poverty line do not really care about the method of transaction of money but rather just need the entity for expenditure.

Although the news has already riled up the community in Ukraine, the officials have publicly stated that the decision is not fully formed with some integral parts of the process still up for consideration.

Kushch even added:

“An important difference between the cryptocurrency and digital money is that the latter are issued by financial institutions and are their obligations, which can be bought for cash. A cryptocurrency, for example, Bitcoin, can be obtained by mining, without putting any hryvnia in the bank”

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SEC’s harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson




SEC's harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson
Source: Pixabay

Circle-acquired Poloniex, one of the leading cryptocurrency exchanges in the world, announced the geofencing of nine assets on its platform recently. The reason revealed by them was the uncertain regulatory climate in the US, leading them to take a cautionary step fearing the Securities and Exchange Commission’s [SEC] retribution.

Fred Wilson, the co-founder of Union Square Ventures, had recently voiced his opinion that the regulatory body’s ruling to delist coins in the US crypto exchanges was very damaging. He believed that hostile policies would eventually drive away innovation from Silicon Valley, which is the “global epicenter of tech” to Asian countries. He tweeted,

“In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause”

Citing Coinbase as an example, Wilson stated that the “most trusted/compliant/secure/safe” exchanges were based in the US. So, according to him, driving trading or liquidity to Asia is “detrimental to safety and security”.

Preston Byrne attorney at Byrne & Storm, PC responded to the above tweet stating that “alleged misconduct” in Asia would be harmful to the entire crypto-space. He emphasized that the major threat to Bitcoin adoption was the “bad actors” who need to be identified and eliminated.

Calling for the need to monitor trading regions and markets, Byrne posted,

“95% of trading volume is faked. The Bitfinex/Tether saga is insane and only just getting started. If crypto is going to be adopted, we need to have more trust in our trading venues. That requires close supervision of trading venues and markets.”

Ari David Paul, the founder of BlockTower Capital, also reacted to the post,

“Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.”

Responding to the above tweet, Byrne said that $3 billion of Tether [USDT] was what kept Binance and Finex “afloat” and contributed significant volumes and were currently under the heavy check by State of New York. He also added that the aforementioned platforms were a “hair’s breadth away” from an investigation regarding fraud.

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