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The Verkhovna Rada, the governing body of Ukraine, reportedly passed a law regulating payment methods that officially puts central bank digital currency (CBDC) on par with cash, bank accounts and electronic payments. The law mentions the "digital money of the National Bank of Ukraine - electronic form of a unit of account in Ukraine, emission of which is run by the National Bank of Ukraine."

Stellar CEO Denelle Dixon has said that her company is still working with Bitt on Tascombank's digital hryvnia  project despite the armed conflict between Russia and Ukraine. The last significant update on the project was published in December 2021, when it was stated that they would utilize Stellar to pilot a digital version of the Ukrainian hryvnia. To be clear, this is not a central bank digital currency (CBDC) project. The only connection with the National Bank of Ukraine is that is being conducted under the supervision of the central bank.

The National Bank of Ukraine (NBU) presented a draft concept for its potential e-hryvnia central bank digital currency (CBDC). It considers three possible design options. The first option would be a retail CBDC with smart contract functionality to implement targeted government (G2P) payments. The second option envisions what sounds like a wholesale e-hryvnia for usage in operations related to virtual asset operations, including on crypto exchanges. The third option include cross-border payments functionality, although it's not clear that this is being looked at at the retail or wholesale level. https://bank.gov.ua/ua/news/all/natsionalniy-bank-predstaviv-uchasnikam-platijnogo-rinku-ta-rinku-virtualnih-aktiviv--proyekt-kontseptsiyi-e-grivni

Ukraine's Ministry of Digital Transformation and Deputy Prime Minister Mykhailo Fedorov has reportedly instructed the National Bank of Ukraine (NBU) to launch its e-hryvnia central bank digital currency (CBDC) pilot this year, instead of the originally planned 2024. The NBU published an e-hryvnia concept note in November 2022, and in January 2023 Tascombank carried out CBDC tests on the Stellar network.

The National Bank of Ukraine ordered electronic money (e-money) issuers to suspend the issuance of e-money and the replenishment of electronic wallets with e-money, as Russian forces lay siege across Ukraine. Other measures included suspending the foreign exchange market, limiting cash withdrawals and prohibiting the issuance of foreign currency from retail bank accounts. This has led to many Ukrainians reportedly turning to cryptocurrencies.

The National Bank of Ukraine has released a report on issuing its own central bank digital currency, based on a pilot scheme for the 'e-hryvnia' which was completed in February.

The Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation signed a Memorandum of Understanding and Cooperation, within which they will work on the development of a strategy for virtual assets in Ukraine. The focus of the partnership will be on development of virtual asset markets, implementing stablecoin and regulation, and developing the Central Bank in Ukraine's digital currency (e-hryvnia).

The National Bank of Ukraine (NBU) is now officially authorized to issue a central bank digital currency (CBDC). Ukrainian President Volodymyr Zelenskyy has signed a new Payment Services law, officially enabling the country's central bank to issue a CBDC, the digital hryvnia. The new law authorizes the NBU to set up regulatory sandboxes for testing payment services and instruments based on emerging technologies. The new legislation also requires close collaboration between the Ukrainian central bank and local startups in the payment market, taking into account the demand of the private sector. https://www.president.gov.ua/ru/news/glava-derzhavi-pidpisav-zakon-pro-platizhni-poslugi-69849

Ukrainian commercial bank TASCOMBANK, and Bitt, the firm behind the Eastern Caribbean Central Bank and Central Bank of Nigeria central bank digital currency pilots, have launched a pilot project to issue an electronic hryvnia on Stellar. The pilot will test the digital currency on the use cases of programmable payroll for public employees at Diia, an IT solutions enterprise, as well as for peer-to-peer payments and merchant payments. The project is being implemented under the supervision of the National Bank of Ukraine and with the support of the Ministry of Digital Transformation.

Ukraine and Russia lead the list of countries with higher crypto adoption rates, with 12.73% and nearly 12%, respectively, according to DappRadar. And even though Bitcoin and other crypto-assets remain highly volatile and strongly correlated with the capital markets, they pointed to a recent study by Gemini showing that countries with higher inflation rates are most likely to adopt cryptocurrencies.

Back in December 2021, Ukraine's Ministry of Digital Transformation launched its ePidtrymka digital payment system to distribute COVID-related stimulus funds to fully-vaccinated Ukraine citizens who are over 18. The card is issued free of charge both online and offline at participating bank branches. The money can be spent on books, gyms, tickets to the cinema, theater, museums, concerts or transportation in the Ukraine, but money had to be used within four months, after which the account is closed. [Hence this is a form of Gessell money as described by Celo's Zeke Copic in a recent paper.] The cards are not reloadable, so they're more like gift cards. However, a few weeks ago the usage restrictions were dropped, and card-to-card transfers were allowed.

Back in December 2021, Ukraine's Ministry of Digital Transformation launched its ePidtrymka digital payment system to distribute COVID-related stimulus funds to fully-vaccinated Ukraine citizens who are over 18. The card is issued free of charge both online and offline at participating bank branches. The money can be spent on books, gyms, tickets to the cinema, theater, museums, concerts or transportation in the Ukraine, but money had to be used within four months, after which the account is closed.

Back in December 2021, Ukraine's Ministry of Digital Transformation launched its ePidtrymka digital payment system to distribute COVID-related stimulus funds to fully-vaccinated Ukraine citizens who are over 18. The card is issued free of charge both online and offline at participating bank branches. The money can be spent on books, gyms, tickets to the cinema, theater, museums, concerts or transportation in the Ukraine, but money had to be used within four months, after which the account is closed.

Through a new blockchain-based humanitarian program, the Office of the UN High Commissioner for Refugees (UNHCR) will send cryptocurrency to Ukrainians displaced by Russia's atrocities. Stellar Development Foundation has partnered with UNHCR to deliver USD Coin (USDC) to Stellar's Vibrant digital wallets of eligible applicants. The relief beneficiaries can then convert the USDC into the currency of their choice at at MoneyGram outlets, of which there are 4,500 in Ukraine. The program's developers hope that this will allow refugees to get aid more easily, regardless of whether or not they have access to a bank account.

Despite considerable testing and research, the prospect of a central bank digital currency (CBDC) still raises significant concerns for central bankers in Ukraine. However, the central bank apparently is still concerned about such a currency's effect on financial stability as well as the possible threat to the traditional banking system.

Ukraine's Draft Bill on Virtual Assets had a successful first hearing in the nation's parliament, and after two more hearings could become law. The bill defines virtual assets as "a set of data in electronic form," which "can be an independent object of civil transactions, as well as certify property or non-property rights." The law suggests not considering virtual assets as legal tender in Ukraine. The ownership of virtual assets is considered as being the entity holding the private keys, unless they are held with a custodian, forfeited by the court decision or acquired illegally. Virtual assets would be regulated by Ukraine's Ministry of the Digital Transformation, and crypto service providers must register to be able to operate in the nation. http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_2?id=&pf3516=3637&skl=10

Ukrainian President Volodymyr Zelenskyy signed into law a bill that defines the legal status, classification, ownership and regulators of virtual assets, and sets registration requirements for crypto services providers. The bill passed through parliament on February 17 after Zelensky rejected an earlier version approved in September 2021. The market will be regulated by Ukraine's National Commission on Securities and the Stock Market. Exchanges will be able to operate legally, and banks will open accounts for them.  Ukraine has received at least $100 million in crypto donations over the past three weeks from people who want to support its defense and help fund humanitarian efforts.

The Russian State Duma will consider a draft law on February 27, 2024, that will legalize the use of tokenized assets for cross border payments. Russia already has a legal framework for tokenized financial assets, which it refers to as digital financial assets (DFA). These regulated assets include tokenized commodities, trade finance and other structured products. However, DFAs were explicitly not allowed to be used for payments. However, Russia is now looking for alternative ways to settle cross border transactions, in light of sanctions imposed following Russia's invasion of Ukraine.

According to the IMF paper, several central banks in different countries are considering implementing some form of CBDC. Uruguay has reportedly launched a pilot program already, while the Bahamas, China, Eastern Caribbean Currency Union, Sweden and Ukraine are on the verge of testing their systems.

The National Bank of Ukraine presented the results of testing its e-hryvnia CBDC project, concluding so far that it raises significant concerns. It is particularly concerned about the effect on financial stability as well as the possible threat to the traditional banking system.