The Ukrainian Parliament was submitted to a law proposal that allowed crypto money to be added to the country’s official reserves. The proposal, which is the signature of eight MPs, aims to give the Ukraine Central Bank (Nbu) to gold and foreign exchange reserves as well as to hold crypto currency. Yaroslav Zheleznyak, Vice President of the Tax and Customs Policy Committee, aims to accelerate compliance with global financial innovations and support the development of digital economy. If the bid is enacted, the Central Bank will be presented with the option to create this reserve and no necessity will be brought.
The purpose of the proposal
Yaroslav Zheleznyak said in a statement from his personal Telegram account that they expect this regulation to contribute to the progress of Ukraine in the field of digital economy and strengthen macroeconomic stability. Zheleznyak will offer new opportunities for the correct management of crypto reserves, strengthening macroeconomic stability and the development of the digital economy, Z said Zheleznyak.
The main reason for the proposal stands out as accelerating the process of integration of Ukraine with global financial innovations. Zheleznyak underlined that the proposal did not impose a definite obligation to the Central Bank. In this case, NBU will be able to make its own decision to keep crypto money as a reserve. This flexibility is seen as important for a new and variable class of assets.
Ukraine’s location in the crypto currency market and global trends
Ukraine, currently 46,351 Bitcoin $109,290.39‘E (value of over 5 billion dollars). However, official records show that these crypto currencies are under the control of various public officials and authorities, not in the state treasury. This amount brings Ukraine to the fourth highest number of crypto currency in the world. Only the United States, China and the United Kingdom are located in front of Ukraine.
The tendency of states to create crypto currency reserves on a global scale is increasing. It is known that the US government has been working in this direction. Pakistan also announced its plans to establish strategic Bitcoin reserves at the end of last month. It is understood that both countries aim to include crypto currencies in government reserves with different motivations. This makes Ukraine’s proposal internationally.
Economic Effects of the Decision
Experts point out that the inclusion of crypto currencies in national reserves may have various effects on traditional financial systems. Such a step is thought to accelerate countries’ digital transformation efforts and allow the variety of financial vehicles. This has the potential to modernize the reserve structure.
However, the risks it can bring with it are not ignored. Excessive fluctuation of the markets and the fact that regulatory frames are still incomplete or unclear in some regions are listed as important sources of concern. It is emphasized that central banks should be extremely careful in creating policy, and that the long -term economic consequences of having digital assets in reserves have not yet been fully foreseen. This proposal of Ukraine is considered as an indication of the country’s determination to digitalization.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
