Digital e-hryvnia: The NBU has outlined the prospects for its launch.
Ukraine continues to move toward the launch of its national digital currency. The National Bank has announced the current stage of this large-scale project and the steps planned for 2024. Will the e-hryvnia be introduced and under what conditions? Read more in our news.
In 2024, the National Bank of Ukraine plans to conduct the second phase of testing for the digital e-hryvnia. As announced by the NBU, the testing of the national digital currency will be open, meaning that banks, non-bank financial institutions, and their counterparties will be able to participate.
This information was shared with the public by the National Bank of Ukraine back in March of this year.
According to the NBU report, the first phase of e-hryvnia testing took place in 2018. This process was conducted in a closed format and included the setup of the "Electronic Hryvnia" platform, the issuance of a limited amount of digital UAH, and test operations with the digital hryvnia conducted by NBU specialists and a limited number of legal entities involved in the pilot project.
However, the next test phase, scheduled for the second half of 2024, will be conducted in an open format. This means that commercial banks, non-bank financial operators, and their clients can participate in testing the functionality of the e-hryvnia.
Andriy Podderegyn, Head of the Payment Systems and Innovative Development Department at the NBU, informed journalists that all payment operations with the e-hryvnia during this testing phase will be conducted on a unified technological platform, which will be administered by the NBU.
“Our goal at this stage of testing is to assess the efficiency and functionality of the technological platform we have chosen, as well as the convenience of using the new digital currency as a means of payment. We will also look into the practical advantages and vulnerabilities of the e-UAH, which will give us the necessary data to make a decision about the feasibility of fully issuing the e-hryvnia into the Ukrainian economy,” explained the NBU department director.
Additionally, he clarified that participating banks will offer the opportunity for end consumers to join the testing phase.
Will the e-hryvnia be introduced in Ukraine?
NBU specialists stated that the decision regarding the full issuance of the national digital currency in Ukraine will be made based on the data collected during the research phase. The NBU will carefully consider and predict all possible impacts of introducing the e-hryvnia on the financial sector and the country's economy.
According to Andriy Podderegyn, replacing cash and non-cash hryvnia with digital currency is not planned. The digital UAH is viewed by the government’s financial experts as a complementary addition to cash and non-cash forms.
Even if the e-hryvnia is introduced, users will be able to choose freely between using cash, non-cash, or electronic hryvnia for payments without any restrictions.