Cryptocurrency Event

National bank of Ukraine might launch a state virtual currency.

NBU, that is the national bank of Ukraine might launch cryptocurrency completely owned by the state. This has come to be known as e-hryvnia or hryvnia. It is believed that this coin, based on the blockchain technology will be completely in control of the government of Ukraine and will be used to facilitate payments in a cashless manner as well as bring about a decline in the costs of these transactions. Several considerations have to be looked at before the coin is finally launched in the market and is capable of playing the role it has been assigned by the government of Ukraine. The ratio has to be set in a way that does not bring about inflation in the market.

A more detailed analysis would be conducted and the role played by such a coin will be analyzed in further detail. Alexey Kustch, who is the advisor of Ukrainian Bank Association has remarked that such a coin, that is, e-hryvnia is not the kind that can be compared with the cryptocurrencies. It is because this cryptocurrencies are anonymous as well as decentralized which is not the case with any coin that will be backed by the state.

However, authorities are looking at considerable turnover from the coin backed by the national currency. Moreover, there is more security as well as there can be noticed a decrease in the time that is usually taken for the transactions to take place. Something similar is being pondered upon by the government of Russia. However, the proceedings are yet in the initial phases and it is yet to be determined if the concept of a fiat backed coin will play out well for the virtual currencies in the long run. However, it can be believed that Ukraine is not the only one that is considering the development of such a coin. Ukraine might also be looking at the changes in its taxation policies, that is, changes in the manner in which taxation will take place and thus affect the participation in the sector. Ukraine is also looking at the way in which the legal status of virtual currency will affect the participation within this sector.

There is a lot that is left open to speculation as far as the several decision of the government of Ukraine is concerned and how it stands to affect those investing in the field of virtual currency.

Kavya Lakhani

Kavya is one of the integral members of the CryptoNewsZ Journalists team. She manages the team of correspondents and researches for the platform. She holds a master degree in Journalism and has cryptocurrency trading experience as well. She constantly follows the cryptocurrency ecosystem with a passion for decentralized fin-tech. You can also mail her at [email protected] to discuss anything related to her reports.
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