Ukraine Moves to Adopt Bitcoin as National Reserve Asset

Ukraine is reportedly on the verge of adopting Bitcoin as a national reserve asset, a move that could significantly enhance its financial resilience amidst the ongoing conflict with Russia. Lawmakers in Ukraine are currently working on a proposal to establish a Bitcoin national reserve, with a draft bill already in its final stages. This development was confirmed by Yaroslav Zhelezniak, a member of parliament, who announced the plan during the CRYPTO 2025 conference in Kyiv on February 6.

Zhelezniak stated, “We will soon submit a draft law from the industry allowing the creation of crypto reserves.” This initiative comes at a time when Bitcoin has gained international attention as a potential national reserve asset, particularly following the election of US President Donald Trump in November 2024. Trump signed an executive order on March 7 to establish a national Bitcoin reserve, seeded with BTC confiscated from criminal cases.

Sweden also showed interest in adopting Bitcoin as a national reserve asset. A month after Trump's executive order, Swedish MP Rickard Nordin issued an open letter urging Finance Minister Elisabeth Svantesson to consider adopting Bitcoin, citing its growing recognition as a hedge against inflation.

However, the adoption of a national Bitcoin reserve in Ukraine may face significant legal challenges. Kyrylo Khomiakov, regional head of CEE, Central Asia, and Africa at a crypto exchange, noted that implementing such a reserve would require substantial legal changes, indicating that the process will not be swift. He also highlighted that this initiative could lead to greater regulatory clarity in Ukraine, as the government will need to articulate its stance more clearly.

Ukraine had previously planned to legalize cryptocurrencies in early 2025, with the finalization of a draft bill in coordination with the National Bank of Ukraine and the International Monetary Fund. On April 8, Ukraine’s financial regulator proposed taxing certain crypto transactions as personal income with a rate of up to 23%, excluding crypto-to-crypto transactions and stablecoins.

Not all voices in Ukraine’s crypto industry are optimistic about the timing of the proposal. Michael Chobanian, the founder of a Ukraine-based exchange, expressed skepticism, stating that the country is facing severe economic and social challenges. He claimed that the proposal to establish a Bitcoin reserve is merely a distraction from these issues.