Ukraine Explores Crypto Legalization Without Replacing Hryvnia

Ukraine is taking its first steps toward the legalization of cryptocurrency, yet officials remain cautious about allowing it to replace the national currency, the hryvnia. Amid ongoing war and economic challenges, the National Bank of Ukraine (NBU) has signaled support for regulated digital assets while emphasizing the need to protect monetary sovereignty and financial stability [1].

In a recent statement, NBU Governor Andriy Pyshnyy clarified that digital assets such as Bitcoin will be part of the legal financial landscape but will not serve as a means of payment within the country. “Crypto assets must not undermine monetary sovereignty,” Pyshnyy stated, reinforcing the central bank’s stance that Ukraine crypto legalization must not interfere with the hryvnia’s role as the primary currency [1]. The NBU’s approach aligns with international standards, including those of the Financial Action Task Force (FATF), and reflects the broader European regulatory framework.

At the same time, the NBU is actively exploring the development of a central bank digital currency (CBDC), known as the e-hryvnia. A pilot project is currently underway, involving collaboration with the European Central Bank (ECB), the Bundesbank, and the Bank of France, among others. While specific timelines have not been disclosed, the initiative is seen as a critical component of Ukraine’s broader strategy to integrate digital innovation while maintaining control over its monetary system [1].

Under martial law, which has been in place since the start of the war with Russia, the government has imposed strict currency controls. These measures are designed to prevent circumvention of financial regulations and to maintain stability in a time of economic uncertainty. The NBU has made it clear that, during this period, it will not tolerate the use of crypto as an unofficial form of money. “It’s not about banning crypto,” a senior NBU advisor noted, “it’s about protecting monetary integrity during wartime” [1].

One of the more controversial developments is a proposed draft bill from Ukrainian lawmakers that would allow the central bank to hold Bitcoin and other digital assets as part of the country’s national reserves. Though the bill has not yet passed, it has sparked debate over the future role of crypto in Ukraine’s economic strategy. The NBU, however, remains cautious, prioritizing the stability of the national financial system over rapid adoption [1].

The NBU’s hybrid approach—supporting crypto under strict conditions while resisting its use as legal tender—reflects a broader strategy to modernize the financial system without compromising economic control. This cautious yet forward-looking stance is underscored by the e-hryvnia pilot and ongoing international collaboration. In a country dealing with war and inflation, the balance between innovation and stability is more critical than ever.

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[1] https://coinmarketcap.com/community/articles/689607879a14c16682dc544b/