Ukraine prepares its digital currency

Ukraine prepares its digital currency. The country is moving forward on the application of an e-currency.

La National Bank of Ukraine, the country's central monetary institution, is working on a pilot project to test the usefulness of one digital version of your currency, the Hryvnia. The bank has announced that it has completed the first phase of the project, and plans to investigate further uses of the token.

The bank's director of payment systems, Alexander Yablunivsky, made it clear that the country has no intention of launching a criptovaluta. “We are not talking about a cryptocurrency - said the director -“ but about a digital currency of the central bank. It can be implemented on both centralized and decentralized technology. This is a completely separate issue, which follows the chosen target model ”.

But why is Ukraine trying to launch its own digital currency? We recall how the country has been studying the potential of blockchain technology since 2016 and how it finally has a functioning product, although there is ample uncertainty about how it is used: the first projects are very likely to concern peer-to-peer payments and international regulations. However, as Yablunivsky rightly observed, the country is one of the few to be in such an advanced state of use of digital currency.

However, the next news item on this topic will be what the central bank will actually decide to do with this project. For example, will Ukrainian bank accounts be able to account for digital and "traditional" currency side by side?

Probably not. However, for the moment it is not yet clear what the institution's approach will be towards a system that could give significant benefits in terms of efficiency and, for example, monitoring the fake money.