The National Bank of Ukraine Launched State Digital Currency based on the blockchain, as reported by local news sources, Vesti Ukraine.

NBU announces that the blockchain-based Hryvnia, or e-Hryvnia, has to be centralized and remain under Government‘s purview. The state-backed coin is expected to increase the transaction frequency of non-cash payments, besides reducing their cost.

Kiev (Ukraine’s Capital), on many occasions, had bought the idea of “digital coin” under the framework of a Major Project called the “Cashless Economy”.

Ukraine Launched State Digital Currency-Considering the bank officials, this state-backed coin is likely to be tied to the National Fiat currency at 1:1 rate. According to the NBU, this would significantly prevent the rising inflation that is currently affecting Ukraine’s Economic growth. Anyhow, the issue of e-Hryvnia based on blockchain still remains in the planning stages.

Alexey Kutsch, the advisor to the head of Ukrainian Bank Association, is of the opinion that comparing digital currency like e-hryvnia to cryptocurrencies would be premature, since crypto is anonymous and decentralized by definition, unlike a state-backed coin.

 Kutsch also noted that a state-backed digital currency based on blockchain is “quite a promising direction,”. This is a quite outstanding piece of information for crypto traders across Ukraine.

Meanwhile, Russia has also manifested the possibility of instituting a state-owned cryptocurrency, the “CryptoRuble”.

Lately, Ukraine’s Parliamentarians had recommended a tax bill for crypto assets. Indicating five percentage point tax on individuals and legal entities operating with crypto. And an 18 percentage point tax for crypto-related profits.

During July this year, the Ukrainian Cabinet of Ministers held a meet to ascertain the legal status of cryptocurrencies.  In supporting the concept of crypto regulation. Yes, this could be a cornerstone move in Ukraine’s Crypto Industry.

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