Survey: Financial Sector Wants Ukraine’s CBDC to Facilitate Transactions in the Crypto Market

The National Bank of Ukraine has published the results of a survey that sought to determine the demand for central bank digital currencies ( CBDC) A questionnaire was sent to 100 financial professionals from various backgrounds, including financial markets, retail and corporate business, as well as crypto business.

Also, the poll had to identify potential uses for e-hryvnia. NBU was one of the first central banks that began exploring digital currency options. In 2016, it launched a study and tested the CBDC in retail payments two year later. The Chairman of the NBU Kyrylo Shchenko stated, “We have already had practical experience in implementing an pilot project to issue electronic hryvnia in 2018”.

We conducted an extensive survey to find the most popular and profitable options for the ehryvnia, and to assess the potential impact of its implementation.

Representatives from the financial sector were given the opportunity to select between six possible areas in which they believe the e-hryvnia could be used. The most promising application would be for non-cash retail payments. This includes peer-to-peer (P2P), transfers between individuals, and e-commerce transactions. The second most preferred application is to use the CBDC for cross border payments, also as a P2P instrument.

Other options include ‘targeted Social Benefits (G2P),’settlement in Securities (B2B), ‘corporate Payments (B2B), ‘financial Instruments’. 77% of those polled said they supported the first use case, provided that it is extended to include specific government payments like dedicated subsidies. According to the NBU, it will take into consideration the views of financial professionals.

Ukraine’s Financial Sector says E-Hryvnia should be used in the Crypto Space

The survey found that many respondents supported the use the electronic hryvnia to conduct transactions in the area of virtual assets. Representatives from the financial sector also argued that the CBDC should be a cryptocurrency-based currency.

The country’s crypto asset market is large and blockchain technology is readily available. Ukraine’s central banking believes that the use of its digital currency in order to facilitate circulation of virtual assets in the nation – such as in exchange, issuance and other crypto-related transactions, is worth further research.

Ukraine is a leader in cryptocurrency adoption, as it was ranked 1st among more than 150 countries in the Global Crypto Adoption Index last year by blockchain forensics firm Chainalysis. The government in Kyiv has yet to create comprehensive regulations to address the country’s growing crypto space. This year, a draft law ‘On Virtual Assets’, which was just updated, should be up for vote.