The National Bank of Ukraine is planning to launch its own digital currency – e-hryvnia – in 2025. The news was announced on November 29th by the National Bank in response to a request from “Economic Truth” media outlet.
E-hryvnia will be a pilot project that aims to promote the use of e-payments and reduce the country’s reliance on cash. The move is a part of Ukraine’s efforts to modernize its financial system and stay up-to-date with the latest trends in digital currencies.
According to the Governor of the National Bank, Yakiv Smolii, the introduction of e-hryvnia will contribute to the development of the country’s e-economy and help to combat the shadow economy. “The e-hryvnia will be a modern, safe and convenient means of payment, which will significantly reduce transaction costs and increase financial inclusion,” he stated.
The e-hryvnia will be similar to physical banknotes, but it will only exist in electronic form. This means that it will have all the same features as traditional cash, such as being a legal tender, but it will only be available for use in digital transactions. Users will be able to store and transfer e-hryvnia through special digital wallets, which can be accessed through a mobile or desktop device.
One of the key advantages of e-hryvnia is its high security level. The digital currency will be protected by advanced encryption mechanisms, making it virtually impossible to counterfeit. This will provide users with a safe and reliable means of payment, which is especially important in today’s digital world.
In addition, e-hryvnia will contribute to the development of cashless payments in Ukraine. Currently, cash is still the primary means of payment in the country, with 50% of all payments being made in cash. This not only leads to significant costs for businesses, but it also hinders the growth of the economy. By promoting e-payments, e-hryvnia will help to reduce transaction costs and boost economic growth.
The introduction of e-hryvnia will also have a positive impact on financial inclusion. In Ukraine, the majority of the population, especially those living in rural areas, do not have access to traditional banking services. E-hryvnia will provide these individuals with a safe and accessible means of electronic payments, allowing them to participate in the e-economy.
The pilot project for e-hryvnia is expected to take place in selected regions of Ukraine in 2025, and if successful, it will be implemented nationwide. The National Bank of Ukraine has already begun to draft a legislative framework for the digital currency and is consulting with experts and international organizations to ensure the smooth implementation of e-hryvnia.
The news of the introduction of e-hryvnia has been welcomed by many experts, who believe that it will bring numerous benefits to the Ukrainian economy. In addition, the move has received positive feedback from the public, with many expressing their excitement about the convenience and safety of e-hryvnia.
In conclusion, the National Bank of Ukraine’s plan to launch e-hryvnia in 2025 is a significant step towards modernizing the country’s financial system. The digital currency will provide a safe, convenient, and cost-effective means of payment, promoting the development of the e-economy and reducing the country’s reliance on cash. It is a promising initiative that has the potential to bring numerous benefits to Ukraine’s economy and its citizens.
