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Ukraine’s New Fiat Restrictions to Boost Popularity of Crypto, Industry Says – Regulation Bitcoin News

The Central Bank of Ukraine has adjusted the fixed exchange rate of its currency in the US dollar and introduced strict restrictions on citizens’ hryvnia transactions. According to local crypto department representatives, this measure could turn more Ukrainians into cryptocurrencies.

Wartime hryvnia restrictions expected to increase interest in cryptocurrencies

National Bank of Ukraine (NBU) Introduced new rules in response to the changing fundamentals of the country’s economy during the ongoing military conflict with Russia.Financial authorities devalued Ukrainian hryvnia by 25% against the appreciation of the US dollar on Thursday, setting new limits Banking With the national fiat.

According to the update Rule For individuals enacted on 21 July, banks may sell non-cash foreign currencies to their customers only if the amount has been deposited for at least 3 months without the option of terminating the contract.

The 50,000 hryvnia limit for withdrawals from payment cards has been replaced with a weekly limit of 12,500 ($ 340). Overseas peer-to-peer transfers from cards issued by Ukrainian banks have been reduced from 100,000 hryvnia (about $ 2,700) to 30,000 hryvnia ($ 800). In addition, the limit for cross-border payments using the hryvnia card is set at 100,000 per month.

NBU Governor Kirill Shevchenko assured that all measures introduced since the beginning of the war were temporary and would allow the economy to survive. However, they are having a serious impact on Ukrainians, especially the millions of people who have been forced to leave the country and are still unable to return.

The latest NBU restrictions could lead to increased Ukrainian interest in cryptocurrencies. Mikhail Chobanyan, the founder of the Ukrainian crypto exchange Kuna, comment For crypto news outlet Forklog. “We expect increased sales and cryptocurrency usage. In Europe, there is nothing 100,000 hryvnia,” the entrepreneur added.

Chobanyan also said that the new restrictions would hinder the work of volunteers, as most humanitarian assistance is issued by Ukrainian banks and purchased with personally owned cards. “Now we are completely switching these flows to cryptocurrencies,” said Chobanian, who explained that he was aggressive in central bank policy and warned that Ukrainian banks and national budgets would be losers. Told.

Tags for this story

Central Bank, Cryptography, Cryptographic exchange, Cryptocurrency, Cryptocurrency, currency, deposit, Fiat, Foreign currency, Hryvna, Individual, Kuna, limit, Country currency, nbu, operation, limit, transaction, Ukraine, Ukrainian, drawer

Do many Ukrainians agree to look to cryptocurrencies as restrictions on the trading of fiat money increase? Please let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ words. In addition to cryptocurrencies, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credit: Shutterstock, Pinterest, Wikicommons

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