Bitcoin and digital currency regulations have been implemented by very few countries until now. Most of the Central Banks across the world have just issued warnings regarding the use of bitcoin and digital currencies, stating various risks involved with such transactions and its association with criminal activities. The Ukrainian Central Bank — National Bank of Ukraine recently issued a similar warning for the second time.
Governments and Central Banks are currently in a wait and watch mode, keeping a close watch on latest developments in the bitcoin segment. They are currently weighing pros and cons of digital currency and the feasibility of creating and implementing digital versions of their respective fiat currencies. The ease of transaction and virtually non-existent cost of transaction makes digital currency an attractive option for Governments and Central Banks. It will also eliminate the need for physical banknotes, there by drastically cutting operational costs.
The National Bank of Ukraine’s warning against bitcoin usages comes in the wake of increased bitcoin transactions in the country. Bitcoin is increasingly becoming more popular in Ukraine. There have been a series of bitcoin conferences and meetups in the territory with Bitcoin Conference held in Kiev being a prominent one.
Increased activity in bitcoin sphere has also sparked interest among Ukrainian banks and financial institutions. Banks and financial institutions have been actively involved in these events and meetings, understanding the potential of bitcoin and blockchain technology in their operations. National Bank of Ukraine’s recent warning serves as a reminder of risks associated with bitcoin for regional banks and bitcoin community in the country.
National Bank of Ukraine has already mentioned that the institution doesn’t have any plans to independently introduce digital currency regulations. The Central Bank will adopt the global policy towards bitcoin and digital currency once the global banking community comes to a conclusion. Meanwhile the Central Bank will continue monitoring developments in bitcoin sector.