The central bank of Ukraine has moved to support the development of the cryptocurrency industry after the Ukrainian parliament adopted a major crypto police force in early September.

The National Bank of Ukraine (NBU) issued an official statement on the bones principles of monetary policies for the upcoming year in which information technology paid item attending to the regulation of cryptocurrencies on Sept. xiii.

The cardinal bank emphasized that the NBU recognizes the importance of technological innovations associated with virtual assets and sees "many promising opportunities," like improving access to financial services and increasing contest in the payments market.

According to the NBU, cryptocurrencies similar Bitcoin (BTC) have non had a pregnant touch on the Ukrainian monetary policy and financial stability due to its current "relatively limited" adoption level and high price volatility.

However, equally the bank is confident that further adoption growth would eventually brand cryptocurrencies less volatile, the NBU will exist taking certain measures to ensure fiscal stability. As such, the NBU will "pay proper attention" to monitor the risks of the rapid adoption of crypto, particularly focusing on private stablecoins, a type of cryptocurrency pegged to an underlying asset like a fiat currency or a precious metallic.

According to the bank, cryptocurrencies ultimately pose a potential risk of replacing the national currency and the "emergence of parallel money circulation" outside the control of the NBU. Other risks include strange majuscule outflows, money laundering concerns, as well as "displacing traditional banking" every bit a whole.

In order to minimize these risks, the NBU volition piece of work to ensure that the Ukrainian hryvnia is the only legal tender in Ukraine, the authority said, adding that the primal bank volition still be committed to promoting crypto at the same time, stating:

"The National Banking company will make efforts to build a system providing transparent and understandable state regulation that volition promote the development of fair and efficient circulation of virtual avails."

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The NBU also noted that it would continue to report the international experience of developing a central depository financial institution digital currency (CBDC). Every bit previously reported, Ukrainian President Volodymyr Zelenskyy signed a police that officially enabled the NBU to consequence a CBDC in July 2022.

The news comes later the Verkhovna Rada of Ukraine adopted the typhoon bill "On Virtual Assets" on Sept. viii, granting legal recognition to cryptocurrencies like Bitcoin. Despite not recognizing Bitcoin as legal tender, the legislation still allows crypto-based payments through converting crypto avails into fiat, according to some government officials.