Topic: Banks in Ukraine Restrict Clients from Buying Bitcoin using Ukrainian hryvnia - page 2. (Read 275 times)

I agree. I believe buying Bitcoin by Ukrainians will not directly affect the price of hryvnia but I presume that with the current situation in Ukraine (the war), they would rather have the money within the country remain in circulation for easier access instead of putting it into Bitcoin investment but not because they are against Bitcoin investment also.

In my opinion, the law on virtual assets adopted in Ukraine allows the use of cryptocurrency as a means of payment on the territory of Ukraine.
Thus, Article 1 of this law defines the concept of a virtual asset as follows:
virtual asset - a particular type of lane, which is valuable in electronic form, used in the system of virtual assets, which can be found in civil society.
Article 9 of this law provides for the following rights when using a virtual asset:
Participants in the virtual asset market have the right to:
 1) independently collect a counterparty among participants in the virtual assets market for the purpose of conducting transactions with virtual assets;
 2) take into account the post-chief services involved in the total number of virtual assets necessary, available and reliable information about such post-chief services, the rules of yoga work, the judicious transfer of minds of his operations, as well as the manifest abilities for him
 3) on the basis of the quality of servants, connected with the total number of virtual assets;
 4) vidkrivati and vikoristovuvati for zdiysnennya operations z virtual assets rahunka in banking and other financial institutions;
 5) on the judicial and other ways to defend their rights to virtual assets, both from the side of the state, and from the side of other participants in the virtual assets market;
 6) for the withdrawal of their personal data in accordance with the procedure established by the Law of Ukraine "On the withdrawal of personal data";
 7) independently collect the values ​​of virtual assets, for which operations are carried out with them.

Thus, the cryptocurrency in Ukraine has the right to fully walk in society along with other means of payment.

How it can affected hryvnia's price if the Ukraine's store didn't yet accept Bitcoin as alternative payment? President Zelenskyy not make Bitcoin as legal tender, so I doubt their citizens will use Bitcoin as a currency since most people buy Bitcoin is for investment asset. Hryvnia's price wouldn't automatically decrease when people use it to buy Bitcoin because it will make their fiat money less circulated. People will still using fiat to buy anything, the value will decrease when government print of significant amount of hryvnia.

I guess the reason is obvious,
perhaps because PrivateBank don't want more UAH supplies to flow to overseas services in the midst of a crisis and hope other local banks will take similar steps as a more significant precaution. The latest government policy will generate enthusiasm for Ukrainian citizens to buy bitcoin anywhere including on global exchanges.

This news somehow puzzled me. It's ironic that just a few days after President Zelenskyy signed the crypto-friendly bill, On Virtual Assets, banks have now restricted clients from purchasing Bitcoin using the local currency.

It seems the order is directly coming from the country's central bank, the National Bank of Ukraine, accordingly while martial law is in place. PrivatBank, Ukraine's largest commercial bank, is one of those that implements the restriction. Accordingly, PrivatBank is trying to "keep financial stability under martial law."

I'm not sure how high the demand for crypto is in Ukraine, but is it a threat to Ukrainian hryvnia's stability? Is the demand that high that it could significantly pull hryvnia's value down?

It somehow dawned on me that governments, which are basically built on fiat, couldn't serve two masters at the same time, fiat and crypto. By fully embracing crypto, it is very possible that people will ditch their local currencies in favor of Bitcoin. In this way, the value of the currency as well as the economy is affected. Is this the case with Ukraine?

---

1. https://cointelegraph.com/news/ukraine-s-largest-savings-bank-halts-bitcoin-buys-with-hryvnia-report