Ukraine Discussed the Launch of National E-currency

Ukraine is yet another country considering the possibility of launching a national electronic currency. The Orion Finance team is interested in this initiative. We checked the latest updates on this topic to figure out what “e-hryvnia” is really about?

The National Bank of Ukraine reports on the recent conference regarding the launch of e-hryvnia, where the representatives of different countries took part in. It is noteworthy that last year's report on this project by National Bank states that ‘There are no fundamental advantages of using exactly DLT technology to build a centralized system for issuing e-hryvnia’.

Although the National Bank is still considering the use of DLT technologies, the e-hryvnia will be most likely a fully centralized analogue of fiat currencies, and it will remain under state control.

SMO Orion Finance Noam Frishman comments, ‘It seems to me that we should separate the concepts of electronic money and cryptocurrencies. According to existing information, the electronic hryvnia has nothing to do with cryptocurrencies. Nevertheless, I agree that the e-hryvnia can stimulate the development of the digital payment industry if the cost of the transaction by using this tool will be cheaper in comparison with using existing tools’.

The Orion Finance team supports fintech development initiatives, but we are against the substitution of concepts. We hope that the Ukrainian government will benefit from using the blockchain for this project.