The Verkhovna Rada of Ukraine adopted in the second reading the Law “On Payment Services”, which gives the Central Bank of the country the right to issue state cryptocurrency, which is recognized as legal tender.
On Wednesday, June 30, the majority of deputies of the Verkhovna Rada of Ukraine voted for bill No. 4364. After the law comes into force, complex changes will take place on the payment market of Ukraine.
The new law contains only a brief mention of the future state cryptocurrency, but officially puts the yet-to-be-released electronic hryvnia on a par with cash, bank accounts and electronic payments. The law mentions “digital money of the National Bank of Ukraine – an electronic form of settlement currency in Ukraine, the issue of which is carried out by the National Bank of Ukraine.”
According to the document, the national digital currency of Ukraine is a legal tender, and “digital money can be used only in cases stipulated by the laws of Ukraine and the regulations of the NBU”. The law also distinguishes between the concepts of electronic money and state cryptocurrency. The rules for making payments, as well as the procedure for issuing, storing and redeeming the national digital currency, must be determined by the Central Bank.
Recall that at the beginning of the year, the National Bank of Ukraine completed testing of the electronic hryvnia. Then the Central Bank stated that it sees many advantages in it, but fears that it could harm the traditional banking system. Last summer, the Central Bank of Ukraine issued a limited amount of the national digital currency as part of testing.
