The National Bank of Ukraine (NBU) has a clear understanding of the potential architecture model for the e-hryvnia. Preparations are underway for the pilot project of a digital cashless hryvnia, and the search for a technological partner is nearing completion, reports Baltimore Chronicle, citing an interview with NBU Governor Andriy Pyshnyy for RBC-Ukraine.
“We aim to ensure that this pilot project provides us with the maximum amount of information to make a decision about large-scale issuance. At the same time, we are closely monitoring how the CBDC process is developing in other central banks,” Pyshnyy stated. He also emphasized the importance of the “Digital Euro” project, given Ukraine’s course towards European integration. The NBU is actively engaging with the European Central Bank, Bundesbank, the National Bank of Belgium, the Bank of France, and the Monetary Authority of Singapore.
However, according to the NBU governor, it is still too early to talk about the launch of the e-hryvnia. A pilot project will be implemented first, which is currently being prepared.
It is worth noting that the NBU is exploring the feasibility of introducing its own retail digital currency (CBDC) – the e-hryvnia. It is expected to be an addition to cash and funds in bank accounts, not a replacement, but an additional option for use as desired.
As noted by NBU Deputy Governor Oleksiy Shaban, cash will not disappear from circulation even if digital currency is introduced. The NBU is not considering abandoning cash.
Earlier we wrote that dollar to remain a key currency in Ukraine’s reserves — NBU.