National Bank: Ukraine to launch pilot project for digital hryvnia

Deputy Governor of the National Bank of Ukraine Oleksii Shaban has said that the National Bank of Ukraine is working on a pilot project to introduce a digital hryvnia.

The National Bank is assessing the feasibility of implementing a retail central bank digital currency (CBDC) called the e-hryvnia, Caliber.Az reports per Russian media. 

"We are convinced that in Ukraine, the e-hryvnia should complement cash and funds stored in accounts," Shaban said.

"This will not be a replacement, but rather an additional option that can be used at one's discretion," he noted. 

He noted that while no decision has been made yet regarding the large-scale issuance of the e-hryvnia, preparation for the pilot project has already begun. The e-hryvnia will be an electronic form of Ukraine's currency, issued by the National Bank. Similar to physical cash, it will be a liability of the central bank.

Shaban said that if the decision to introduce the e-hryvnia in Ukraine is made, it will become a legal tender and exist solely in electronic form. It must fulfill all the functions of money and be accessible to all user categories without exception. 

The e-hryvnia will enable all types of payment transactions. The deputy governor explained that the introduction of electronic currency would contribute to the development of Ukraine's payment infrastructure in line with global trends. However, he assured that there are no plans to abandon cash hryvnias, and this option is not even being considered by the National Bank. 

"Users will be able to choose freely which form of hryvnia—cash or non-cash, including the e-hryvnia—to use for their transactions," he emphasised.

By Naila Huseynova