Ukraine’s Central Bank Pushes for Crypto Legalization—But Draws the Line at Payments

Ukraine’s central bank is stepping into the crypto fray—with a twist. While advocating for legalization, Governor Kyrylo Shevchenko made one thing clear: don’t expect to buy your borscht with Bitcoin anytime soon.

The National Bank of Ukraine (NBU) wants a regulated framework for digital assets—just not as legal tender. Shevchenko’s stance mirrors growing global tension: embrace innovation, but keep central banks in control. No surprises there.

Behind the scenes? A balancing act. Ukraine’s crypto adoption ranks among Europe’s highest, but the NBU fears monetary chaos if stablecoins or BTC bypass the hryvnia. Meanwhile, lawmakers scramble to draft legislation that pleases both crypto anarchists and IMF loan officers—good luck with that.

One cynical takeaway: Central banks love blockchain… as long as it’s on their terms. The NBU’s move teases a future where crypto is legal—but neutered. Classic finance gatekeeping, wrapped in progressive buzzwords.

“Virtual Assets Cannot be Means of Payments “

“It is important for us that our ‘red lines’ are clearly observed,” the governor said. “Virtual assets cannot be a means of payment, cannot in any way undermine the effectiveness of our monetary instruments.”

He stressed that due to legalization of crypto, there shouldn’t be a transfer of monetary powers or weakening of the regulator’s instruments.

Further, the governor warned that under martial law, crypto assets should not become a tool for circumventing currency restrictions.

“The legalization of VIRTUAL assets should also not undermine our effectiveness in ensuring financial monitoring; the legislation in this area should implement the norms of international FATF standards and relevant European regulations,” the NBU head added.

Governor Pyshnyy called for “the de-shadowing” of digital assets, which WOULD have a positive impact on the reputation of the Ukrainian financial sector among international partners.

NBU to Test CBDC, Governor Reveals e-Hryvnia Plans

The NBU is experimenting the potential e-hryvnia architecture model and is currently preparing for a pilot project with a technological partner, the governor further noted.

Given Ukraine’s European integration course, special attention is paid to the development of the Digital Euro project.

“We want this pilot to give us as much information as possible to decide on a large-scale issue. At the same time, we are looking very closely at how the CBDC process is developing in other central banks,” Pyshny said.

Though it is too early to reveal any timeframe on the launch of an e-hryvnia, he said the NBU is already working with the European Central Bank, the Bundesbank, the Bank of Belgium, the Bank of France, and the Bank of Singapore.

In June, Ukrainian lawmakers proposed a draft bill that could allow the NBU to include Bitcoin and other crypto in its national reserves.