One of the design options for Ukraine’s CBDC describes e-hryvnia available for use in crypto exchange services.
The National Bank of Ukraine (NBU) released a draft concept for its digital hryvnia candidate for the Central Bank Digital Currency (CBDC), or e-hryvnia.
Central Bank of Ukraine, November 1. February 28 released a statement on the concept of e-hryvnia, which aims to perform all the functions of money by adding the token and non-hryvnia as its main goal.
The NBU said it introduced the concept of e-hryvnia and continues to develop the CBDC project with participants in the commodity market, payment institutions, and public organizations. According to the announcement, the central bank is currently considering and developing three possible CBDC options, based on design and key features.
The first option defines e-hryvnia for payment of non-cash stores that work as an “organized” currency through smart contracts. An e-hryvnia market will allow the implementation of targeted public services and the reduction of public and administrative expenses, NBU said.
The second CBDC option in charge of e-hryvnia is available for use and operations related to cryptocurrency exchange, transfer, and other operations of virtual assets. “E-hryvnia can become one of the main factors in the development of quality infrastructure for the commodity market in Ukraine,” the statement said.
The third option includes e-hryvnia to enable payments across borders to provide fast, cheap, and transparent global transactions. “The development and implementation of e-hryvnia can be the next step in the evolution of Ukrainian payment infrastructure,” said Oleksii Shaban, Director of NBU Payment Systems in the Department of new development, in the release. He added that Ukraine’s CBDC can have a positive impact on ensuring economic security and strengthening the state’s financial governance, as well as sustainable economic growth.
As per the announcement, the Ukrainian Institute of Intellectual Property registered the trademark “e-hryvnia” for the NBU in October 2022.
As mentioned earlier, the NBU has been actively exploring the possibility of issuing a CBDC in recent years, hiring blockchain developers, and working with large-scale institutional projects for the Stellar Development Foundation. According to the regulator, the NBU started a pilot project to provide e-hryvnia for business payments based on the blockchain in 2018.
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