Ukraine to Introduce New Bill Supporting Crypto Payments
As expected, cryptocurrency payments are becoming a reckoning force already. Ukraine is set to join the league of countries who have wholeheartedly embraced crypto payments. Deputy Minister of Digital Transformation, Oleksandr Bornyakov, made this known during a Friday interview with a local publication.
Cryptocurrency Not a Legal Tender, But Ukraine to Allow Crypto Payments
Bornyakov noted that although no cryptocurrency has yet been made a legal tender within the country, the proposed bill will pave the way for purchases with cryptocurrencies. Essentially, the proposal will legalize crypto payments such that payment services will have no choice than to integrate the conversion of cryptocurrencies to fiat or the country’s official currency, Hryvnia. This will adopt a method similar to payments made with the dollar card as Ukraine via a legislation does not allow purchases to be paid for in fiat dollars.
Ukraine’s latest announcement is an indication that the European country is warming up to digital currencies. As of late July, Ukraine had enacted a law entitled ‘On Payment Services’, which empowers its apex bank to begin research on a central bank digital currency (CBDC), a digital version of the Hryvnia.
By virtue of the law, the National Bank of Ukraine (NBU) is charged with responsibility to issue a digital Hryvnia. Other provisions of the July law, directs the NBU to partner with private Fintech firms in order to promote innovations within the sector. Framework for piloting payment systems within Ukraine is also within the purview of the apex bank’s role, as per the law.
Ukraine Opposes Illegal Crypto Mining, Raids Unlicensed Farm in July
Ukraine embarked on an illegal crypto mining crackdown early in July. According to reports, authorities had raided a mining firm, confiscating thousands of mining software and hardware, including computer devices. The mining farm was reportedly the largest mining enterprise until the raid. It was said to be responsible for a spate of power outages the country had experienced then, as they had converted an abandoned power station for their mining operations.
Ukraine has always been one of the choicest locations for miners, even in the wake of Bitcoin miners’ exodus from China. However, mining companies have to be licensed by authorities, else their activities will be considered illegal. The proposed bill for crypto payments strengthens the country’s resolve to adopt and adapt to emerging technologies while regulating them.
If the crypto payments bill receives the force of law, it will position Ukraine as one of crypto-friendly regions, after European counterpart, Portugal. Popular firms with branches in Portugal have indicated interest in accepting crypto payments.
On Friday, the official Portuguese store of Chinese tech giant, Xiaomi announced that customers will be able to purchase a wide range of mobile and electronic devices via crypto like Bitcoin, Ethereum, Dash and Tether (USDT). Ukraine’s impending bill will also legitimize crypto trading and reporting. As the deputy minister noted, this will broaden the possibilities of their use. Meanwhile, hybrid payments solutions are also springing up across the globe.
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