The Ukrainian government is moving ahead with its central bank digital currency (CBDC) plans, as the National Bank of Ukraine (NBU) is now officially authorized to issue a digital currency.
Ukrainian President Volodymyr Zelenskyy has signed a law, “On Payment Services,” allowing the country’s central bank to issue CBDC.
According to the new law, the NBU will set-up regulatory sandboxes for testing payment services based on emerging technologies. The new legislation also requires a close partnership between the Ukrainian central bank and local startups in the payment market. The Ukrainian parliament approved the initial phase of this new law to establish an open network payment system by June-end.
The On Payment Services aims to serve the implementation of open banking, practice of sharing access, and control to consumer financial information. This new law might enhance the revolution of financial technologies in the country. According to plan, Open banking will start operating in Ukraine in 2023. It also aims to bring private Fintech services into a better-established connection so that it can create new business opportunities.
Also Read: New Paper From Bank of Canada highlights Benefits of CBDC
The document adapts Ukrainian legislation to the legal framework of the European Union. It will further allow integrating the payment system of Ukraine with the EU system.
