This new currency, referred to as the “e-hryvnia,” will complement the existing cash and non-cash forms of the national currency. Deputy Chairman of the National Bank, Oleksiy Shaban, detailed the plan in a recent interview with the Center for Economic Strategy (CES).
1. A New Form of Money
- Digital Hryvnia Introduction
Under the Law on Payment Services, the e-hryvnia will join cash and non-cash hryvnia as a third form of the currency. - Not Just Electronic Money
Shaban clarified that this digital currency is distinct from conventional “electronic money.” Unlike electronic money, which is tied to non-cash payment instruments, the digital hryvnia is an official form of national currency issued by the NBU.
“We are not talking about the fact that it will be the only type of currency, and the citizen can decide for himself whether to use it or not. If you don't want to—don’t use it. The third form of the hryvnia, an alternative one,”
– Oleksiy Shaban, Deputy Chairman, National Bank of Ukraine
2. Potential Applications of e-Hryvnia
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Programmable Transactions
Digital money can enable automated, condition-based payments. For instance, government support programs might specify that certain funds can be spent only on designated products:- “eKnyga” Funds: Purchases restricted to books.
- “eVidnovlenie” Funds: Purchases limited to building materials.
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Digital Economy Alignment
With the rise of digital assets and the digital economy, having a native digital currency ensures that the payment mechanism aligns seamlessly with transactions involving digital goods and services.
3. Pilot Program and Timeline
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Technological Testing
Before any official issuance, the NBU intends to pilot technological aspects of the e-hryvnia. This pilot will be conducted with real participants:- Merchants accepting digital hryvnia for goods or services
- Wallet owners who will use and spend the currency
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Search for Technology Provider
The National Bank is actively looking for technology partners to help implement the pilot platform. Several Ukrainian banks have already expressed interest in joining the test phase. -
Voluntary Participation
Once launched, using the e-hryvnia will be optional. Individuals can choose whether or not to adopt the digital currency as part of their daily financial transactions.
4. Key Takeaways
- Third Official Form of Hryvnia
The e-hryvnia joins cash and non-cash payment forms as a core element of Ukraine’s monetary system. - Greater Efficiency and Transparency
By adopting digital currency, the NBU aims to reduce transaction costs, streamline financial operations, and bolster the digital economy. - Government Programs and Security
Programmed usage of digital hryvnia could enhance the effectiveness of subsidies or targeted social support, ensuring funds are spent only on authorized goods or services.
Conclusion
The National Bank of Ukraine is laying the groundwork for a new digital currency—the e-hryvnia—which promises greater flexibility, security, and cost-effectiveness in financial transactions. By piloting the technology with real market participants and collaborating with multiple Ukrainian banks, the NBU aims to ensure a smooth rollout. While the decision to fully implement and issue this form of currency remains pending, the e-hryvnia stands to become a cornerstone of Ukraine’s evolving financial landscape, offering the public and businesses an innovative alternative to traditional cash and non-cash payments.
