Ukraine CBDC Tracker

The National Bank of Ukraine reported that it is working to both research and create a CBDC (referred to as the e-hyrvnia). Because it has moved beyond research alone, Ukraine is considered to be in the pilot phase.

The National Bank of Ukraine said that the purpose of its CBDC is to “effectively perform all functions of money and supplement cash and noncash forms of hryvnia.” Furthermore, the National Bank of Ukraine said that the CBDC “could have a positive impact on ensuring economic security of the country, strengthen monetary sovereignty of Ukraine and the [National Bank of Ukraine’s] capability to maintain price and financial stability as foundation of stable economic growth.” Although written on a separate page, the National Bank of Ukraine has also stated that it seeks to achieve a cashless economy—an effort that was later revealed to be tied to its CBDC initiative.

In 2016, the National Bank of Ukraine “started exploring the possibility of issuing [its] own CBDC,” according to a 2019 analytical report. In 2018, the National Bank of Ukraine began a new pilot program to test transactions on the “Electronic Hryvnia platform.” This pilot involved users creating wallets, installing mobile apps, loading wallets, making transfers, and other features. At the end of the pilot, the analytical report noted that there were “no fundamental advantages in using specifically the DLT technology to build a centralized e-hryvnia issuance system.”

In 2021, the Ukrainian government signed an agreement with the Stellar Development Foundation to promote the development of a CBDC and move to a cashless society. Then, deputy prime minister of Ukraine Mikhail Fedorov revealed that the Ukrainian government was considering “paying salaries to employees of the Ministry of Digital Transformation in electronic hryvnia.”

In 2022, the National Bank of Ukraine introduced a draft concept for its CBDC. The announcement explained that the CBDC is being developed for three possible uses: (1) for retail non-cash payments with the possible functionality of "programmed" money; (2) for use in the field related to the circulation of virtual assets; and (3) for cross-border payments. Examples of “programming” included social payments, control of targeted funds, and smart contracts. In 2023, deputy prime minister of Ukraine Mikhail Fedorov told reporters that the National Bank of Ukraine plans to introduce CBDC legislation in 2024.

However, due to the ongoing military invasion of Ukraine by Russia, it is difficult to currently assess the country in terms of its treatment of human rights and civil liberties. An analysis is forthcoming.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.