{"id":312141,"date":"2021-07-30T16:25:47","date_gmt":"2021-07-30T13:25:47","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ukraine-central-bank-now-officially-allowed-to-issue-digital-currency\/"},"modified":"2021-07-30T16:25:47","modified_gmt":"2021-07-30T13:25:47","slug":"ukraine-central-bank-now-officially-allowed-to-issue-digital-currency","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ukraine-central-bank-now-officially-allowed-to-issue-digital-currency\/","title":{"rendered":"# Ukraine central bank now officially allowed to issue digital currency"},"content":{"rendered":"

“# Ukraine central bank now officially allowed to issue digital currency <\/strong>”
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The Ukrainian government is moving forward with its central bank digital currency (CBDC) plans, as the National Bank of Ukraine (NBU) is now officially authorized to issue a digital currency.<\/p>\n

Ukrainian President Volodymyr Zelenskyy has signed<\/a> the law titled \u201cOn Payment Services,\u201d officially enabling the country\u2019s central bank to issue a CBDC, the digital hryvnia, according to a Thursday announcement.<\/p>\n

The new law authorizes the NBU to set up regulatory sandboxes for testing payment services and instruments based on emerging technologies. The new legislation also requires close collaboration between the Ukrainian central bank with local startups in the payment market, taking into account the demand of the private sector, the announcement reads.<\/p>\n

Initially approved<\/a> by the Ukrainian parliament in late June, the law \u201cOn Payment Services\u201d aims to provide the implementation of open banking, the practice of sharing access and control to consumer financial information through third-party app<\/a>lications. The law is expected to stimulate the development of financial technologies in the country, allowing private fintech companies to establish cooperation with banks and get more business opportunities.<\/p>\n

Among others, the newly signed law is also designed to adapt the Ukrainian legislation to the legal framework of the European Union, which would eventually allow integrating the country\u2019s payment system with the one of the EU, the announcement notes. The legislation is based on modern requirements and takes into account the standards of European regulatory acts, including the Payments Service Directive 2 and the E-Money Directive.<\/p>\n

Related: <\/em><\/strong>Ukrainian e-bank plans to offer Bitcoin trading in July<\/em><\/strong><\/p>\n

As previously reported, the NBU has been closely looking into issuing a digital currency over the past several years, outlining CBDC\u2019s potential to strengthen public confidence in the central bank and its financial services. However, the bank remained largely concerned about potential related risks like CBDC\u2019s impact on financial stability and possible threats to the traditional banking system.<\/p>\n

Earlier this year, Ukraine\u2019s Ministry of Digital Transformation entered a partnership with the Stellar Development Foundation to jointly develop a strategy for digital assets and CBDC infrastructure.<\/p>\n