How the life of Ukrainians will change after the launch of the cryptocurrency hryvnia

After the full launch of the electronic hryvnia in Ukraine, the volume of money transfers through commercial banks is expected to decline. This was stated by participants of the Digital Money Forum organized by the Association of Ukrainian Banks (AUB).

According to financiers, the e-hryvnia will allow transactions to be made without the intermediation of financial institutions. In turn, this will eliminate the risk of losing funds in the event of company bankruptcy. At the same time, banks will continue to be able to provide deposit, lending, and other services to their customers, including using the e-hryvnia.

In addition, financial institutions will have the opportunity to develop modern products, namely

• digital wallets for e-hryvnia
• customer identification services;
• mobile service delivery platforms;
• new payment methods;
• investment consultations;
• services for users of virtual assets;
• secure smart contracts and other software products for the digital economy.

According to the forum participants, the banks that are best adapted to the new conditions will form a new niche in financial services, including the use of e-hryvnia and virtual assets.

In early February, the Ministry of Digital Transformation asked the National Bank to accelerate the development of the electronic hryvnia. The pilot project to launch the Ukrainian CBDC is scheduled for 2024.

For the future, the NBU sets the following goals for the state digital currency:

• The use of the e-hryvnia should be accessible and convenient for all Ukrainians. This includes companies, individuals, and government agencies.
• The NBU is working on various options for using the e-hryvnia. Each option will be programmed into a separate option through smart contracts.
• Over time, separate CBDCs may appear for social payments, government lending, etc.
• The e-hryvnia will be available for international settlements and cross-border payments.