The National Bank of Ukraine (NBU) has unveiled a proposal for its central bank digital currency (CBDC) candidate, the digital hryvnia, also known as e-hryvnia.
According to an official news statement issued on Monday, the central bank has discussed its idea for an electronic version of the country’s sovereign currency, the hryvnia, with officials from banks, non-banking financial organizations, and the crypto market. As potential CBDC uses, the bank is investigating retail non-cash payments, virtual asset circulation, and cross-border transactions.
The NBU stated that it has introduced the e-hryvnia idea and is continuing to develop the CBDC project with virtual asset market players, payment providers, and governmental entities.
According to the release, the central bank is now studying and developing three CBDC solutions based on design and primary features.
The first alternative depicts the e-hryvnia as a retail non-cash payment currency with the potential for “programmed” money via smart contracts. According to the NBU, a retail e-hryvnia would allow for the deployment of targeted social transfers as well as a decrease in government administrative expenses.
The second CBDC alternative anticipates e-hryvnia being used for Bitcoin trade, issuance, and other virtual asset transactions.
The third approach is to use the e-hryvnia to facilitate cross-border payments, allowing for faster, cheaper, and more transparent worldwide transactions.
“E-hryvnia can become one of the key elements of qualitative infrastructure development for the virtual assets market in Ukraine,” the report said.
The Ukrainian Intellectual Property Institute registered the trademark e-hryvnia for the NBU in October 2022, according to the release.
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