Ukraine’s New Fiat Restrictions To Boost Crypto Popularity, Says Industry BlockBlog

The Central Bank of Ukraine has adjusted the fixed exchange rate of the national currency to US dollars and introduced stricter limits on hryvnia transactions for citizens. The measures should encourage more Ukrainians to turn to cryptocurrencies, a representative of the local crypto industry believes.

The wartime hryvnia limits should boost cryptocurrency interest

The National Bank of Ukraine (NBU) has introduced new rules in response to changing fundamentals in the country’s economy amid an ongoing military conflict with Russia. The monetary authority devalued the Ukrainian hryvnia against the strong US dollar by 25% on Thursday, setting new limits on banking with the national fiat.

According to the updated rules for private individuals, which came into effect on July 21, banks can only sell currencies other than cash to their customers if the amounts have been deposited for a period of at least three months, with no option to terminate the contract.

Advertising

The 50,000 hryvnia limit for cash card withdrawals has now been replaced with a weekly limit of 12,500 ($340). Peer-to-peer transfers abroad from cards issued by Ukrainian banks have been reduced from 100,000 hryvnia (about $2,700) to 30,000 hryvnia ($800). And the limit for cross-border settlements with hryvnia cards was set at 100,000 per person. month.

All the measures introduced since the beginning of the war are temporary and allow the economy to survive, assured the governor of the NBU Kirill Shevchenko. However, they seriously affect Ukrainians, especially the millions of Ukrainian citizens who were forced to leave the country and still cannot return.

Recent NBU restrictions may lead to an increase in Ukrainian interest in cryptocurrencies, commented the founder of the Ukrainian crypto exchange Kuna, Mikhail Chobanyan, to the crypto news outlet Forklog. “We expect an increase in turnover and use of cryptocurrencies. In Europe, 100,000 hryvnias is nothing,” added the entrepreneur.

Chobanyan also noted that the new borders will hamper the work of volunteers, as most humanitarian aid is purchased with cards issued by Ukrainian banks and owned by individuals. “Now we will completely switch these flows to crypto,” said Chobanyan, who called the central bank’s policy aggressive and warned that Ukrainian banks and the state budget would be the losers.

Key words in this story

Central Bank, Krypto, crypto exchange, Cryptocurrencies, Cryptocurrency, Currency, deposits, Fiat, foreign currency, Hryvnia, individuals, Kuna, borders, national currency, nbu, operations, restrictions, transactions, Ukraine, Ukrainians, Withdrawals

Do you agree that many Ukrainians will turn to crypto amid growing restrictions on fiat transactions? Let us know in the comments section below.

5D400B11 D5DE 4922 B4F4 0F7229C37672

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “To be a writer is who I am rather than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leave a Comment