Ukraine: New Fiat Restrictions will Boost Cryptocurrency Popularity – Experts

Jamal Molla
Written By Jamal Molla
I write about cryptocurrency, with a special interest in NFT and metaverse in particular.

The Ukrainian cryptocurrency community is currently facing new rules rolled out by the National Bank of Ukraine (NBU) to address the changes in the country’s economy, thanks to the ongoing military crisis with Russia.

The country’s apex bank adjusted the national currency’s fixed exchange rate in dollars and simultaneously clamped down on hryvnia transactions for the locals.

A cryptocurrency expert representing the local crypt sector believes that the measure may increase cryptocurrency awareness among the citizens as they may turn to digital currencies for their transactions.

To effect the necessary changes that will strengthen the local currency against the US dollars, the central bank of Ukraine devalued the former by 25% against the stronger foreign currency on Thursday. It also set new banking limits that the citizens are permitted to perform with the national currency under the new regulation.

The updated regulation mandates banks to sell non-cash forging currency to individuals provided that the customer can deposit the amounts for a minimum of 90 days without a termination option. This rule has been enforced by the local banks since July 21.

Previously, the apex bank placed a 50,000-hryvnia withdrawal ceiling on payment cards. That policy has been substituted with a more flexible withdrawal option that allows a weekly withdrawal limit of 12,500.

More so, the bank has reduced peer-to-peer transfers abroad from Ukrainian banks-issued cards to 30,000 (approximately $800) from 100,000 (approximately $2,700). Locals can no longer exceed 100,000 per month on cross-border settlements via hryvnia cards, according to the new regulation.

Kirill Shevchenko, NBU Governor, assured the citizens that all the measures that the apex bank introduced since the war started are temporary to ensure the economy’s survival. However, these measures are having a negative impact on the masses, especially citizens who have left the country and can’t return.

In response to the new NBU restrictions, Mikhail Chobanyan, the Ukrainina crypt exchange, Kuna’s founder, noted that the new restrictions may drive an increasing number of Ukrainians to digital currencies. The successful entrepreneur said: “We expect an increase in turnover and use of cryptocurrencies. In Europe, 100,000 hryvnias is nothing.”

In the interview with Forklog, a cryptocurrency news outlet, the entrepreneur noted that volunteers may be discouraged by these new restrictions since they used cards issued by the local banks to make purchases for their humanitarian works. He added that “Now, we will completely switch these flows to crypto” while warning that the state budget and the Ukrainian bank will feel the biggest negative impact of the policy he considers “aggressive.”

In another crypto news, Bitcoin Network Difficulty Reduces to small miners’ delight.

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