National Bank of Ukraine (NBU) to Entertain a State-Backed Blockchain Cryptocurrency Tied To Local Fiat

National cryptos seem to have become something more common after the controversial Petro was launched by the government of Venezuela. Now, the National Bank of Ukraine has been considering to launch a new state-owned token that will be based on the blockchain technology, local media outlets report.

The bank affirms that the “e-hrevnia” will be based on the national fiat, the hrevnia. The token, on the contrary to many of the projects that we have seen so far, will be centralized and it will remain under the control of the government.

One of the reasons why the government decided to create this new coin is to increase the rate of non-cash payments inside the territory of the country and to reduce the costs of these transactions with the help of the distributed ledger technology.

The idea of a digital coin has already been brought up several times by the government of the country during a framework of a project called “Cashless Economy”. As an example, the bank has revealed that it plans to launch a new token in January that would not be backed by the blockchain technology.

This version of the token would be backed 1:1 with the fiat money of the country, basically being like a stablecoin that can prevent the inflation rate. However, it should be noted that the bank is still at its earliest stages when it comes to the development of this new product, so there are plenty of things to be discussed at the time so that the project can be improved.

The bank has also noted that releasing a blockchain-based cash version is still in the plans for the possible future. Vesti Ukraine, an advisor of the bank, Alexey Kustch, believed that the digital currency that does not use the blockchain tech cannot be compared to cryptos a there is anonymity and decentralization in these tokens, which is not the truth in state-backed coins.

He has also noted that this can be a good solution to reduce the costs and the time of the transactions made by the users.

Russia Also Discusses State-Owned Crypto

Not only Ukraine is making plans to use a cryptocurrency created by the government in the near future. Russia is also dealing with the possibility of launching a state-owned token crypto called CryptoRubble. The token would be launched in January is everything goes according to the plans of the company.

In Ukraine, the legal status of cryptocurrencies and their taxation is currently being discussed at length. The government is proposing to tax crypto-related profits and to determine the legal status of these assets with more clarity in the near future.

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