Tech

Ukrainian bank suspends transfers of electronic funds, promoting the use of crypto

The Central Bank of Ukraine is dealing with digital remittances as part of one of the latest measures implemented in connection with the nationwide declaration of martial law.

The National Bank of Ukraine has ordered issuers of electronic money (electronic money) to suspend the issuance of electronic money and replenish e-wallets with electronic money. The written order also states that the distribution of electronic money is temporarily prohibited.

The reference to electronic money probably refers to fiat currencies stored in digital accounts through platforms such as Venmo or PayPal.

This is one of many new rules imposed by the country’s central bank when Russian troops besiege Ukraine.

The National Bank of Ukraine on Thursday issued a statement with a number of resolutions, including an order to suspend the foreign exchange market, limit the withdrawal of cash and prohibit the issuance of foreign currency from retail bank accounts.

While Ukraine is paving the way for cash, and Moscow is carrying out air strikes and ground troops, some Ukrainians are turning to cryptocurrencies instead.

Kuna, a popular Ukrainian crypto exchange, shows that domestic buyers pay a premium for the USDT stablecoin from Tether, which is pegged to the price of the US dollar.

“We do not trust the government. We do not trust the banking system. We do not trust the local currency,” said Michael Chobanyan, founder of Kuna, in an interview with Coindesk. “Most people have nothing to choose but the crypt.”

Tether is the most popular stablecoin with a market capitalization of nearly $ 80 billion, and unlike cryptocurrencies such as bitcoin and etherium, which have experienced high volatility in recent weeks amid rising geopolitical tensions, tether, like other stablecoins of this kind kind of, usually pretty steady in price.

However, at the current exchange rate, the price for 1 USDT is about 32 Ukrainian hryvnia (national currency), or $ 1.10, due to increased demand.

For months, Ukrainian leaders sought rebranding as a mecca for digital currencies.

Ukrainian In 2021, President Vladimir Zelensky signed a law that paved the way for the country’s central bank to issue its own digital currency, and the president and parliament recently agreed on a law to legalize and regulate cryptocurrency.

During an official state visit to the United States in August 2021, Zelensky spoke of Ukraine’s large “legal innovation market for virtual assets” as a point for investment, and Digital Transformation Minister Mikhail Fedorov said the country was modernizing its payments market to allow the National Bank to issue currency.

Prior to the Russian attack, Ukraine had plans to open the cryptocurrency market for businesses and investors, according to the Kyiv Post. Senior government officials are also promoting their crypto-street trust to investors and venture capital funds in Silicon Valley – but the Russian invasion has diverted attention from those efforts.

Ukrainian bank suspends transfers of electronic funds, promoting the use of crypto

Source link Ukrainian bank suspends transfers of electronic funds, promoting the use of crypto

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