President of Ukraine Volodymyr Zelenskyy signed the Law on Payment Services, which gives the National Bank of Ukraine (NBU) the right to issue state digital currency.
According to the new
the law, NBU can create “regulatory sandboxes” for testing payment services, services and tools using the latest technologies. The Central Bank of Ukraine will closely interact in the payments market with local startups working in the field of fintech and cryptocurrencies.
In addition, conditions will be created for the development of banking services in an open format. This means that payment service providers and technology platforms will be able to leverage a unified payment ecosystem. This will allow private fintech companies to partner with banks and expand business opportunities.
The signed law is aimed at adapting Ukrainian legislation to the legal framework of the European Union and integrating the country’s payment system with the EU system. The law was drawn up taking into account the norms of European regulations, including the Second Payment Directive (PSD2) and the Electronic Money Directive (EMD).
The NBU has been exploring the possibility of issuing digital currency over the past few years. The regulator believes that the digital hryvnia will increase public confidence in the central bank and its services. However, the NBU remains concerned about the potential risks inherent in the state-owned cryptocurrency. A few months ago, the NBU said that despite its many benefits, it is not known how the introduction of the state stablecoin could affect the traditional banking system.
At the beginning of the year, the Ministry of Digital Transformation of Ukraine entered into a partnership with the Stellar Development Foundation to jointly develop the digital hryvnia infrastructure.
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