Ukraine’s central bank draws red line: cryptocurrency will not be legal tender in Ukraine

National Bank of Ukraine Governor Andriy Pyshnyy stated in an interview with RBC-Ukraine that virtual assets will never be allowed as a means of payment in Ukraine, calling this a "red line" for the NBU.

"It is important for us that our ‘red lines’ are strictly upheld. Virtual assets cannot serve as a means of payment, nor can they in any way undermine the effectiveness of our monetary policy tools. There must be no transfer of monetary powers and no weakening of the NBU's capabilities as a result of virtual asset legalization," he said.

Pyshnyy emphasized that the only legal tender in Ukraine is and will remain the hryvnia.

At the same time, the NBU does not rule out the future introduction of an e-hryvnia, a digital version of the non-cash hryvnia.

"But it’s too early to say that a decision to issue the e-hryvnia is imminent," Pyshnyy noted.

Another key concern, according to the NBU Governor, is to prevent the use of virtual assets to circumvent restrictions imposed under martial law.

"Legalizing virtual assets must not weaken our ability to conduct financial monitoring. Nor should it contribute to the growth of the shadow economy," Pyshnyy added.

• In February 2022, the Verkhovna Rada adopted Law No. 2074-IX "On Virtual Assets," which was signed by the President in March. However, the law has not yet taken effect, as it required amendments to the Tax Code—which parliament has not passed.
• Currently, the government is working on an updated draft law on virtual assets. The future regulatory framework in Ukraine, which will also cover the crypto industry, will be based on the EU’s MiCA (Markets in Crypto-Assets) regulation.