Ukrainians will be able to use e-hryvnia faster than expected

The head of the Ministry of Digital Transformation of Ukraine, Mykhailo Fedorov, said that a pilot launch of the e-hryvnia is planned for 2024. According to RBC-Ukraine, the ministry is going to speed up the development of the state-owned CBDC.

«Recently, I was presented with an electronic hryvnia based on the Stellar product. The first transactions have been made on the blockchain, and we can track the movement of these funds. According to the law, the NBU is supposed to launch pilots in 2024, but we want to start working this year and not postpone it until the next year. That is why we are communicating with the NBU and business. The launch of the e-hryvnia will happen irrevocably,» Fedorov said.

The NBU sets the following goals for the state digital currency:

• The use of e-hryvnia should be accessible and convenient for all Ukrainians. This includes companies, ordinary citizens, 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.

«The development and introduction of the e-hryvnia may be the next step in the evolution of Ukraine’s payment infrastructure. The asset will contribute to the digitalization of the economy, further spread of non-cash payments, reduce their cost, increase their transparency, and increase confidence in the national currency in general. This will strengthen the NBU’sability to maintain price and financial stability as a key to sustainable economic growth,» said Oleksiy Shaban, Deputy Governor of the NBU.

Prior to the official launch of the Ukrainian CBDC, Fedorov plans to significantly reduce the circulation of ordinary paper money. The minister believes that the innovations will make Ukraine one of the leaders in the cryptocurrency sector, attracting the attention of potential investors.