Ukraine’s National Bank Working on to Remove Obstacles Bitcoin Transactions Facing

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Ukraine’s National Bank Working on to Remove Obstacles Bitcoin Transactions Facing

Whereas earlier last month, the Ukrainian government was planning to block Bitcoin accounts used by separatists operating in the Eastern regions of Lugansk and Donetsk, this month the National Bank is working on a roadmap to remove obstacles for the largest electronic payment system PayPal and Bitcoin digital currency to come to the country.

Though the two events are not comparable as they address the two issues, it definitely indicates, the authorities in Ukraine are paying attention to the digital currency and understand the huge potential it has. As the latest understanding regarding Bitcoin is coming up, it appears, the government in Ukraine is willing to mend its ways to accommodate digital currencies.

For the purpose, a working group of National Bank, professional organization and business company representatives has been set up. They will harmonize the Ukrainian legislation and regulations with the relevant regulations and directives in the EU. The development regarding this is still at nascent stage; therefore, a lot of comments are not coming up.

Cash Crunch in Ukraine

However, the head of the Ukrainian interbank association of EMA electronic payment systems, Alexander Karpov, showed his happiness about the latest developments. He says that the National Bank’s effort to facilitate the international payment systems’ access to the Ukrainian market is going to help the country get funds from abroad.

Nonetheless, the NB will ask PayPal to add the hryvniya to their currency list so that they could work with all of the country’s online shops. Local reports claim that even Bitcoin has pitched an offer to the Ukrainian National Bank to let them join the country’s system of electronic payments alongside PayPal.

Bitcoin Donations for Protestors in Ukraine is a Major Issue

Alexander Karpov is optimistic about the chances as according to him both Bitcoin and PayPal would soon appear on the Ukrainian financial market. Though Karpov seems optimistic, the last time the authorities in Ukraine hammered Bitcoin because they consider Bitcoin has been used to fund terrorist activity in Eastern Ukraine.

They also believe the digital currency has played a role in the aftermath of Kiev’s protests. The political unrest in the country generates a kind of paranoia among the authorities and their conclusion regarding Bitcoin seems to fall in the same category. Though there were some protestors who were asking for Bitcoin donations, it is not yet clear how much they received.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com