Ukrainian National Bank Considering Launching State Digital Currency Tied to Local Fiat

The National Bank of Ukraine (NBU) is considering launching a state-owned digital currency based on blockchain, local news outlet Vesti Ukraine reported. NBU says that the blockchain-based hryvnia, or e-hryvnia, has to be centralized and remain under government control. The state-backed coin is expected to increase the rate of non-cash payments, along with reducing their cost. According to bank officials, this version of a Ukrainian state-backed coin would have to be tied to the national fiat currency at a rate of 1:1. According to the NBU, this would prevent the growth of the inflation rate. However, issuing an e-hryvnia based on blockchain still remains in the planning stages.