A new bill will allow cryptocurrency payments in Ukraine like Bitcoin, despite refusing to accept digital currency as a legal tender, a government official said.
What Made Cryptocurrency Payments In Ukraine Possible?
The deputy minister Oleksandr Bornyakow of the Ministry of Digital Transformation, Ukraine is confident about the fact that it would be, “quite legal to pay with cryptocurrencies” in Ukraine via payment intermediaries that allow conversion in crypto to fiat.
In an interview on Friday, the official said that the draft bill of Ukraine on virtual assets clearly states that digital currencies do not have legal tender in the nation, only enabling crypto purchases. There is no official Ukraine cryptocurrency as of now.
However, according to the bill, the local payment processors can still offer services for the conversion of crypto to fiat allowing payment that is deriving from crypto stating:
“Today, the legislation in Ukraine also does not allow you to pay in dollars, but you can easily pay for purchases with a dollar card. Currencies are converted instantly during payment. […] Therefore, it will be quite legal to pay with cryptocurrencies in Ukraine, but through an intermediary.”
Bornyakov also stated that the upcoming bill will legitimize the process of digital currency trading and reporting officially. He further added that,
“We expect that there will be a whole market of intermediary services for payment of goods by cryptocurrencies, their storage, and exchange. This will expand the possibilities of their use.”
Ukraine And Cryptocurrency
When we start to talk about cryptocurrency and Ukraine, it is important to mention that the government and business representatives have designed a roadmap to alter Ukraine into a leader in the integration of digital currency. The makers of the new strategy want to witness half of Ukrainians using cryptocurrencies by 2024. This East European nation is predicted to regulate its crypto arena by the end of 2021.
There are several Ukraine cryptocurrency exchanges, but among them, the most popular is Kuna which is a Bitcoin exchange in Ukraine. But as mentioned before there is no official Ukraine digital currency, so cryptocurrency payments in Ukraine will be done with the already existing digital currencies like Bitcoin and Ethereum.
A prototype in Ukraine has been tried on the Ukraine cryptocurrency Stellar Lumens blockchain technology. Ukraine has employed related experts during discussions over the chances of a Central Bank Digital Currency (CBDC). With the present global interest in CBDCs, this movement portrays a “concentrated effort in releasing a digital currency.”
This news of acceptance of cryptocurrency payments in Ukraine, came shortly after the president of Ukraine Volodymyr Zelensky signed another law that is related to the digital currency which is referred to as the law On Payment Service. This law will officially allow the central bank of Ukraine to offer a central bank digital currency like that of hryvnia.