Ukraine CBDC Tracker

Ukraine is in the pilot phase. The National Bank of Ukraine reported that it is working to both research and create a CBDC (referred to as the e-hyrvnia). The central bank previously launched a pilot in 2018 and plans to launch another pilot in 2025.

CBDC History and Development

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 an 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 January 2020, the Ukrainian government published a report on its strategic plan for financial sector development over the next five years. The report briefly noted that a “concept for the use of the e-hryvnia (Central Bank Digital Currency (CBDC)) at the national level has been developed.” Aside from this note, the report set a December 2020 deadline for the central bank to discuss the CBDC with the private sector, develop business models, and prepare an issuance analysis.

In February 2020, the National Bank of Ukraine cohosted an international conference titled, “Central Bank Digital Currencies: New Payment Opportunities.” National Bank of Ukraine governor Yakiv Smolii gave the opening speech. Governor Smollii said central banks must look for ways to retain their leadership amidst the decline of cash and rise of cryptocurrencies. Later in the conference, National Bank of Ukraine official Roman Hartinger presented the “e-hryvnia vision” with “CBDC as [a] substitute to cash.” Hartinger noted that although the 2018 pilot “used completely anonymous e-wallets,” future developments should be compliant with anti-money laundering and Financial Action Task Force requirements. The National Bank of Ukraine published a report on the conference in June 2020.

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 July 2021, the National Bank of Ukraine published a survey of public attitudes on the potential issuance of a CBDC in Ukraine. Notably, 80 percent of respondents said users should be anonymous.

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.

In February 2024, Andriy Podderyogin, director of the Department of Payment Systems and Innovative Development at the National Bank of Ukraine, said, “We plan to make [the CBDC] pilot project open. Banking and non-banking institutions will be agents of the central bank in distributing money, exchanging it, and enabling users to manage it using their mobile applications.” The pilot was scheduled to launch in the second half of 2024, but it never got off the ground.

In November 2024, the National Bank of Ukraine told reporters, “We are currently planning for the [CBDC] pilot project to take place in 2025, but there are a number of factors that may affect this timeframe.” The central bank added that the pilot would involve real users making payments in an open environment.

Human Rights and Civil Liberties Concerns

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.