Is this a good move by national bank of Ukraine

[Markinzo]

In real sense it actually seems contradictory that a government that  recently accent to a policy that supports cryptocurrency trading in their country is restricting the use of the nation's currency in the purchase of cryptocurrency.

In as much as I feel the Ukrainian government is trying to protect the value of it's currency and at same time minimizing the rate of inflation that might be on due to the war. I wonder how majority of the citizens that don't have access or possession of foreign currency could benefit from this restrictions.

Cause it only place a few persons at advantage against majority. Be it as it may, people will always find their way out.

If I may ask, out of curiosity, is the Russian currency allowed to be used by the Ukrainian citizens in purchasing cryptocurrency since it's a foreign currency too?

[Agbe]

Though I am not from that side but war affects a Country's economy and development. And I do not see any reason why Ukraine would leave their fiat currency and use a foreign Currency to buy and sell bitcoin. That is neo-colonialism and imperialism. I am sensing oppression. Ukraine has been oppressed to abandone their Fiat currency for a foreign Currency. Probably because of the war and the said Country promised to help them to fight and support them (Ukrain) Financially you otherwise. Advance Countries never help another country for Free. Although, there are negative aspect and positive aspect of war.

The negative aspect is that, war destroyed a Country's economy and development. Because when there is war in any country there would be no business activities that will be going on the country, at that stage, the Country's economy has been destroyed. So the best option for the host Country at that time is the use of bitcoin for the buying and selling of goods and services to sustain the fiat economy til the war is over. And the supportive Countries know all these things, so, they compelled Ukraine to abandone their Currency and foreign currency.

Then the position aspect of a war in any country is that. The technological advance Countries would used it to make more money buy selling their technology to them. And also even the Country's government make more money from the war because at that time, no spending in the war is counted or countable. Stealing of national fund is at it peak in a war period. All the expensives are for the war. So people make money from war.

But Ukrain abandoning it fiat currency for another currency is my concern here. Something is wrong at somewhere. There is treaty at somewhere.

[STT]

contradictory

Its during a time of war, hopefully its not their normal policy and its easily forgivable if its going to help the country to do so.    Exceptional measures become normal during time of war unfortunately, its part of what makes it so unprofitable and life is just a case of survival including government finance and budget ability.

[Zilon]

This still falls to the law of demand and supply. Due to the invasion the economic values of the Ukrainian keeps depreciating and as a matter of fact the entire production and exportation scale for Ukrainian keeps depicting causing devaluation in their local currency. Investing in crypto with their local fiat means ditching hryvnia for crypto and will devaluate their local currency even further. Making it's value depreciate in the foreign exchange market and cause even higher inflation rate

[andriarto]

Ukraine bans Bitcoin purchases with local currency amid martial law

Ukrainians are now allowed to buy Bitcoin only with foreign currency with a monthly cap of $3,300.

The National Bank of Ukraine (NBU) continues taking measures to prevent capital outflows amid martial law by enforcing major restrictions on cryptocurrency purchases.

The Ukrainian central bank officially announced Thursday a set of restrictions on cross-border operations, prohibiting individuals from buying cryptocurrencies like Bitcoin (BTC) with the national fiat currency, the hryvnia (UAH).

I do not check the value of hryvnia but I think the war in Ukraine would have caused persistence rise in price of goods and services in Ukraine, which means inflation. NBU restrict Hryvnia to be used to purchase bitcoin a d altcoins but allowed foreign currencies to be used. I still do not understand the reason behind this because also foreign currencies have much to contribute to inflation if its reserves are depleting.

What could be the benefit of the NBC move to allow Ukrainians to only use foreign currencies to purchase cryptocurrencies and not allowing their own local currency to be used? But I think with this, only few people will have access to foreign currencies compared to those that will have access to local currency, which means a way to reduce Ukrainians that are buying cryptocurrencies.

This is understandable, where the Ukrainian currency must circulate to restore the country's economy, especially for crypto purchases which seem to have evaporated functionally for the country. With the current messy facilities and infrastructure and isolated economic activity, of course, Ukraine must be able to get out of this situation. and starting from the internal economic circulation in the country

[yawars20]

When anyone use there own country's fiat money to purchase forgion products, there country buy back that amount while paying overtax. This is quite normal if things are not bad as they are currently in Ukraine.
Also to decrease any type of internal conspiracy they are controlling situation as much as they can and that's a very good initiative in my opinion.

[hatshepsut93]

It's going to bring some stability to Ukraine's national currency, and  this stability is very needed during war, especially the hot phase of war. Nearly every country in the world would take such measures if they were getting invaded and their economy was getting severely damaged.

But this artificial support for hryvnia only means that inflation will be high, and there will be a huge difference between black market and official exchange rate. At some point Ukraine will have to return to free market for their currency market, and it could come with a shock of sudden price drop.