One of the design options for the Ukrainian CBDC describes the e-hryvnia available for usage in crypto exchange operations.
The national bank of ukraine (NBU) has introduced a draft idea for its central bank digital currency (CBDC) candidate digital hryvnia, or e-hryvnia.
Ukraine’s central bank on Nov. 28 released an announcement on the idea of e-hryvnia, that aims to perform all the functions of {cash} by supplementing cash and non-cash types of the hryvnia as its key purpose.
The NBU said it's conferred the e-hryvnia idea and continues developing the CBDC project with participants of the virtual assets market, payment corporations and state bodies.
According to the announcement, the central bank is presently considering and developing potential attainable CBDC choices, depending on style and main characteristics.
The first possibility describes the e-hryvnia for retail non-cash payments with the attainable functionality of “programmed” cash through sensible contracts. A retail e-hryvnia would change the implementation of targeted social payments and therefore the reduction of presidency expenditures on administration, the NBU aforementioned.
The second CBDC possibility envisions the e-hryvnia accessible for usage in operations associated with cryptocurrency exchange, issuance and alternative virtual asset operations. “The e-hryvnia will become one of the key parts of quality infrastructure development for the virtual assets market in ukraine,” the announcement notes.
The third possibility includes the e-hryvnia to change cross-border payments so as to produce quicker, cheaper and a lot of clear international transactions.
“The development and implementation of the e-hryvnia may be future step within the evolution of the payment infrastructure of ukraine,” Oleksii Shaban, director of NBU payment systems and innovative development department, said within the statement. He extra that a Ukrainian CBDC might have a positive impact on ensuring economic security and strengthening the financial sovereignty of the state, moreover as e property economic process.
Related: Russia aims to use CBDC for international settlements with China
According to the announcement, the Ukrainian material possession Institute registered the trademark “e-hryvnia” for the NBU in Oct 2022.
As previously reported, the NBU has been actively learning the chance of issue a CBDC in recent years, hiring blockchain developers and cooperating with major business comes just like the Stellar Development Foundation.
According to the regulator, the NBU launched a pilot project run the e-hryvnia for blockchain-based retail payments back in 2018.
(HELEN PARTZ, Cointelegraph, 2022)