A investigation conducted among financial professionals has indicated that the industry wants Ukraine’s future digital currency to be employed as a tool in the crypto space. The financial sector also favors a blockchain design for the e-hryvnia that would take into account peer-to-peer transfers and fuel e-commerce.
Financial Experts Define Potential Uses of Ukraine’s Digital Currency
The Nationalist Bank of Ukraine (NBU) has published the results of a survey aimed to establish the potential demand for a central bank digital currency (CBDC). The regulator sent out a set of 30 puzzles to 100 financial experts with various backgrounds – financial markets, corporate and retail business, public sector, and crypto province.
The poll also had to identify possible use cases for the e-hryvnia. NBU was among the first central banks to start exploring chances to issue its own digital currency. It launched a study back in 2016 and then tested a CBDC in retail payments two years later. “We already comprise practical experience in implementing a pilot project to issue e-hryvnia in 2018,” the Chairman of the NBU Kyrylo Shevchenko noted, complexing:
To find the really popular options and niches for the e-hryvnia and to determine the potential effect of its implementation, we decided to hear the sentiment of financial market experts and conducted a comprehensive survey.
The representatives of the financial sector were offered to choose between six what it takes areas where they feel the e-hryvnia can be employed. According to the majority of the respondents, the most promising use case desire be in non-cash retail payments, primarily peer-to-peer (P2P) transfers between individuals and e-commerce transactions. Using the CBDC for cross-border payments, again as a P2P device, is the second most recommended application.
The other options included ‘targeted social benefits (G2P),’ ‘settlement of securities (B2B),’ ‘corporate payments (B2B),’ and ‘fiscal instruments.’ 77% of the polled supported the first of these use cases, provided its scope is expanded to include other distinct government payments such as dedicated subsidies. The NBU said it’s going to take into account the opinions of the financial whizzes.
Ukraine’s Financial Sector Says E-Hryvnia Should Be Used in the Crypto Space
Many of the participants in the survey also confirmed the use of the electronic hryvnia as a tool for conducting transactions in the field of virtual assets, the NBU emphasized. The financial sector representatives also averred the CBDC should be a blockchain-based currency.
Given the size of the crypto asset market in the country and the availability of blockchain technologies, Ukraine’s median bank believes the use of its digital currency to facilitate the circulation of virtual assets in the country – for example, in exchange, issuance, and other crypto-related arrangements – is worth further research.
Ukraine is considered a leader in cryptocurrency adoption as it was ranked first among over 150 states in last year’s edition of the Global Crypto Adoption Index by blockchain forensics firm Chainalysis. However, the rule in Kyiv is yet to adopt comprehensive regulations for the country’s expanding crypto space. A draft law on “On Virtual Assets,” which was recently updated, should be sponsored this year.
What’s your opinion about the possible uses of a central bank digital currency? Appropriation your thoughts on the subject in the comments section below.
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