“Why do you need an electronic hryvnia and how can digital currency be used from the National Bank?”, – WRITE: epravda.com.ua
Central banks in most countries, including the ECB, are exploring the possibility of producing their own digital currencies (CBDC). Among the main reasons for this interest is the rapid development of digitalization in all areas of modern life, which requires new non -cash methods of calculations, the desire to increase the speed and convenience of calculations. Someone is at the study stage, and some have already launched pilot projects (such as Turkey, Sweden, Singapore, Thailand, India, China, Brazil, Ghana) and even produces CBDC (Nigeria, Bagama, Ecuador). For example, the ECB is in preparation for digital euro testing for its further release. The National Bank of Ukraine also studies the expediency of introducing its own retail CBDC-E-Highlands. We are convinced that in Ukraine, the hryvnia should be a supplement to cash and funds stored in accounts. It will not be their substitute, but only an additional opportunity that can be used at will. However, today the decision on the large-scale release of e-hryvnia has not yet been made. A pilot project, the preparation of which has already begun, can help in making such a decision. We plan to conduct it on the basis of DLT technology (Distributed Ledger Technology) and in the open environment, that is, with real users and payment services. This will allow us to verify whether the E-Hryvnia is able to perform the functions of money, whether it will meet the needs of users, whether it is effective. Advertising: of course, new is always a lot of questions. E-hryvnia is no exception. Businesses and citizens are interested in research results and our plans. In order to give the public a more understanding of the nature and prospects of the development of the Ukrainian digital currency, we have placed answers on the question of the NBU website that most often receive the National Bank in appeals on the subject. The five most common questions about e-hryvnia were chosen: 1. What is E-Hryvnia? E-hryvnia is a digital money of the National Bank, an electronic form of currency of Ukraine, the issuer of which is the National Bank. This definition contains the Law of Ukraine “On Payment Services”. Read also: NBU Chairman Andriy Pyshny: Hryvnia issue is one end ticket: that is, it is the same hryvnia, only in digital form. Like physical (cash) money, it is an obligation of the central bank. In the case of a decision on introduction, the E-Hryvnia will be a legitimate means in Ukraine and will only exist in non-cash form-as a supplement to cash and non-cash forms of money. It must perform all the functions of money, be convenient and accessible to all users without exception. 2. Why do you need e-hryvnia in Ukraine? The National Bank is studying the possibility of release of e-hryvnias to: create a convenient tool for making payments, in particular by their programming (for example, for dividing payment into several payers, making payments after occurrence of certain conditions or for regular automatic pay state aid), while ensuring the privacy of users; To give users the opportunity to use digital money provided by the National Bank and simplify access to them (for example, when a user’s financial institution will not be able to give him access to a digital wallet, the user will be able to restore access to his wallet through another financial institution); ensure the economic security of the state and strengthen the national bank’s ability to maintain price and financial stability; promote further digitalization of the economy and increase the level of financial inclusion of Ukraine; to promote the development of payment infrastructure of Ukraine in accordance with global trends.3. How and where can you use e-hryvnia? Users are expected to carry out the help of e-hryvnia all possible types of payment transactions in Ukraine, in particular: transfers between individuals (transfers between users wallets); payment of goods and services; payments in favor of the state; charity payments; receive wages and other income, social payments.4. The cash hryvnia will disappear because it will be e-hryvnia? Cash in Ukraine will not disappear due to e-hryvnia. The National Bank does not even consider refusal of cash. The hryvnia as a currency of Ukraine is a legal payment in Ukraine, is accepted by all individuals and legal entities without any restrictions throughout the territory of Ukraine for payment transactions and payments. This definition contains the Law on Payment Services. The key purpose of the e-hryvnia will be effectively perform all the functions of money, supplementing cash and funds stored in accounts and not being a substitute. Users will be able to choose their own form of hryvnia (cash or non-cash, including e-hryvnia) without restrictions. Complete refusal of cash payments in Ukraine is not even impossible, especially given the martial law. After all, in modern conditions, citizens must have quick and convenient access to cash, in particular cash, to meet their basic needs (especially, given the likely blackouts, shelling, other critical events) .5. Will privacy be preserved when using e-hryvnia? Privacy will be saved while using e-hryvnia. The E-Highland Platform (E-Highlant Software and Technical Complex, payment transactions and wallet conducting for which the National Bank will be responsible) will not process and store personal user data. This information will be processed and stored in the financial institution that will serve the user, as is the case, and will be protected as bank secrecy in accordance with the legislation of Ukraine. The National Bank will not have access and will not have any personal information about users of the E-Hryvnia. It will only act as an e-hryvnia platform operator, ensuring its continuous and safe functioning. Therefore, complete control, in the understanding of citizens, from the National Bank in this matter is not possible.