Is this a good move by national bank of Ukraine

[Zilon]

If they Ukrainian are only allowed to purchase Bitcoin only with foreign currencies amid martial law then it means there will be more open channel to access the foreign exchange market with more ease. Ukrainian government are just been careful not to put total control in the hands of its citizens and because of the Ukraine Hryvnia inflation to avoid further threat on the national reserve foreign currencies is the only alternative to purchasing crypto. If Hryvnia is used for purchasing crypto the will be likely more inflation in prices following the economic crises in Ukraine at the moment

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[ningrum]

When the country is threatened with high inflation then the best and fastest solution is to immediately legalize cryptocurrencies, what the ukraine government is doing is the right thing, the country is in chaos because of war and makes production and distribution problematic so that it will be threatened with inflation, of course we deserve appreciation so we can prevent Ukraine from experiencing an economic recession.

Yes, by looking at the existing conditions I think it is the right step or decision to legalize cryptocurrency,
we don't know when the war will end so if the Ukrainian government doesn't do something it will only make things worse,
but what is clear is that we better see what will happen in the future

[Leviathan.007]

Since the war started between Russia and Ukraine there are much news about bitcoin in both countries, Russia is trying to use bitcoin to bypass the sanctions and on the other hand, Ukraine is using bitcoin because there are many donations coming to this country from anonymous people in other countries, this interest and depend forced the government to pay attention to it so because of the interest from people they made a rule to allow people to exchange bitcoins in some conditions however the cap of 3.3K is very small especially if you imagine how people are demanding bitcoin.

[jrrsparkles]

Ukraine people may lost their trust on their local currency so will try to convert their currency to other assets which includes bitcoin so their decision is to prevent the fall of value of their national currency by controlling the volume on certain investment. Good for the economy? Still people can purchases in other methods like p2p with no cap value at all so it isn't really going to be effective their government has to find the ways to strengthen their currency instead of making people to suffer.

[Doan9269]

Pretty simple, it's about controlling the currency.

Should we work by the assumption that USD now is their major standard reserve currency that determines their own hyrivnia or they are working partly in favour of US to help them at the cause of the war the more not minding the cost.

If some Ukrainians already have $ them buying bitcoin will not affect the hryvnia parity at all,

Why am much concern about this is that Ukraine has their own hyrivnia as currency not that USD is their standard major currency over there, same as we have many countries with their local currency and USD just just a standard most reserve currency for exchange.

on the other hand, they buy BTC or any other thing with hryvnias that will make the currency drop, by restricting this you try to limit the damage.

Damage on which side please? USD or hyrivnia currency? are they saying bitcoin will only compound to the falling of USD or hyrivnia? if used, because am not clear with the idea here?.

That's why I've always said a country in an economic crisis will never embrace BTC, it's like you suddenly import hard currency for your useless paper,

El-Savador was in debt before adopting bitcoin and they are going smoothly with an unregrettable decision. i think Ukraine has to wake up from it slumber and cease the opportunity in bitcoin for it quick recovery than waiting on USD to make a difference, US itself is undergoing inflation now and are looking for every possible means to get out.

[Bitcoin2009]

The right policy if ukraine immediately legalizes bitcoin and cryptocurrencies, of course there will be many economic problems that can be overcome and the biggest problem is inflation due to war, besides that it is easy for donors to send money so that they can help ukraine in financial matters.

[Flexystar]

Its funny, Ukrainian first declared that they are open to accept the bitcoin lets say for donations but their own people can not buy stuff with the same currency? How they supposed to live if the cash might have burned in the fire from bombs or may be nothing left with them?
With crypto at least they might have chance to survive in the hard time and usually smartphone is the thing which most of them carries as SOS device in the war field which means they can easily use the crypto payments.
I am not sure how many of you liking the idea behind this but it seems little unfair.

The right policy if ukraine immediately legalizes bitcoin and cryptocurrencies, of course there will be many economic problems that can be overcome and the biggest problem is inflation due to war, besides that it is easy for donors to send money so that they can help ukraine in financial matters.

Policy ? problems?

I think they have all the liberty right now to survive in anyway possible. They are God Dam in the middle of war.

[Pomogator]

I think it's a really good move. Such measures will help keep the capital in circulation and will not let the money on crypto wallets disappear. And in general, in Ukraine, people have long kept their savings in dollars, the hryvnia has fallen very much since 2012, almost by half.

[Ozero]

I would say that the normal rules do not apply to a country at war and they need some leniency. This is a people who are fighting Russia to survive and face being wiped out because of this evil war. Right now all of their attention is focused on stabilizing their economy while trying to defend against the most sadistic type of attackers on the planet. Their government does not have time to worry about the intricacies of trying to create new financial regulations and rightfully so, when their citizens are getting slaughtered all over the country. It is also a method that can be used to infiltrate money from the enemy into subversive elements of their own country outside of the existing banking structure that they can oversee.

Wartime or not, it isn't good policy to hold Ukrainians' funds hostage. Hypothetically, what happens if Ukraine loses the war and Russia overtakes the banking system, what happens to UAH? Probably becomes worthless, and citizens that weren't able to withdraw any funds outside of the monthly cap are out of luck. If currency was actually backed by something, or decentralized, none of this would be an issue. This isn't Ukraine's fault, rather an indictment of fiat currencies as a whole. There is no guarantee in sustainability. You aren't really in control of your funds.

In Ukraine, both the authorities and the population do not even consider the possibility that Russia will be able to occupy the entire territory of Ukraine. The people themselves will not allow this. Therefore, the people think only about victory, although they allow other options. Therefore, already now, under the shelling of Russian missiles, the sowing campaign is going on everywhere, the ruins of houses are being sorted out and damaged bridges and other infrastructure are being restored.
It must be admitted that Russia is deliberately destroying industry and civilian infrastructure, systematically destroying the economy of Ukraine. Based on this, the National Bank of Ukraine is forced to take measures that would support the economy and financial system. Unlike Russia, where the free circulation of the dollar and the euro is prohibited and an artificial exchange rate for these currencies has been created, Ukraine adheres to market relations, but with some restrictions. This is a forced and temporary measure.

[arallmuus]

If the following quote in OP is correct.

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

Its not a complete ban on bitcoin purchase.

They're only banned from buying it with ukraine's native currency.

It would seem targeted at reducing transaction volume of ukraine's native currency, while encouraging the usage of foreign ones.

Exactly my point then, their government is encouraging their citizens to purchase bitcoin only through foreign currency ( probably because bitcoin it is considered as the same type with precious metal in Ukraine ) because if the citizens keep on spending those native currency especially to purchase another currency / cryptocurrency then I'd imagine inflation would sky rocketed in there

Well its actually pretty vague considering that they are still in war

[goaldigger]

I think it's a really good move. Such measures will help keep the capital in circulation and will not let the money on crypto wallets disappear. And in general, in Ukraine, people have long kept their savings in dollars, the hryvnia has fallen very much since 2012, almost by half.

That’s also my thinking, their own fiat currency is already struggling even before the war begin and maybe they are encouraging their people to use other currency is to increase their Dollar reserve since once their people spend it, the money will go to them especially if their people used a bank platform just to have crypto. This can be a good move so they can help their own currency recover as well, and it is still good that Ukraine didn’t banned Crypto at all.

[bocyaj]

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.

The National Bank of Ukraine had banned the cryto currency flow in their country. It may be the move for the Russia. Russia had do the transaction by the crytocurrency. So the war country was doing of opposite move to reduce the flow of money flow into the Russian government. The economic was the counter one for the opposite country involved in the war. This will reduce the economic flow into the Russia.

[kryptqnick]

From what the bank announced, people can buy 100,000 hryvnia worth of cryptos per month from their foreign currency accounts (and that's around 3400 dollars). But, honestly, I can't really assess this move fully. I have a Ukrainian bank account, and before the war one could open a foreign currency virtual card online, convert the money from the foreign currency to local fiat and vice versa with no issues, all online within the online banking interface. But I haven't used that option for a while, so I don't know if it's still as easy. If it is, it's a great and simple workaround. If not, I'm sorry people can't pay for BTC in local fiat, but the move is clearly done to help stabilize our local fiat, which is of course hard to keep on a solid level because of the devastating war. It won't affect me anyway because I don't buy BTC with local fiat. On the contrary, I sell some for local fiat when I need to use it.

[stompix]

Pretty simple, it's about controlling the currency.

Should we work by the assumption that USD now is their major standard reserve currency that determines their own hyrivnia or they are working partly in favour of US to help them at the cause of the war the more not minding the cost.

There is no assumption.
The USD is the standard reserve currency, no matter what hate the USA groups try to picture with their propaganda it's the $, far behind the Euro, and then the rest don't matter, even Russia held it's reserves in $ and more importantly in banks on US soil.
No assumption, that's how things work.

Why am much concern about this is that Ukraine has their own hyrivnia as currency not that USD is their standard major currency over there, same as we have many countries with their local currency and USD just just a standard most reserve currency for exchange.

What's the concern?

Damage on which side please? USD or hyrivnia currency? are they saying bitcoin will only compound to the falling of USD or hyrivnia? if used, because am not clear with the idea here?.

Of course the hryvnia, how could an economy the size of Nebraska damage the US.

El-Savador was in debt before adopting bitcoin and they are going smoothly with an unregrettable decision.

El Salvador is going further and further in debt.
They wore forced to take another $400 million in debt to cover government spending and their deficit to GDP for 2021 is close to 8%.
They are asking the FMI for billions in loans and their whole Bitcoin stash is worth just around 70 millions, actually they've lost money at the current price.
Remember how he bought the dip at ~$48,670?

So no, there is actually not a single thing pointing out right now that BTC has made some significant impact on Salvador economy.

[DrBeer]

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.

I am a citizen of Ukraine, a resident of Kiev. Information as they say "first hand". On February 24, the beginning of the war, the dollar exchange rate was approximately UAH 28 per dollar, and in the first days it rose to UAH 35-38. But it turned out that it was a short-term panic race. Now the rate of the National Bank is UAH 29 (it is usually for commercial settlements, etc.), the cash market rate is UAH 32.
The situation is similar with the euro, the euro grew by about 10% compared to the pre-war period. Before the war, the exchange rate was 31-33 hryvnia/euro. Now the National Bank rate is UAH 31.6 for 1 euro, the rate for cash or for individuals is UAH 36 for 1 euro. There are no special problems with buying/selling currencies.

The reasons for locked transactions in the crypt/hryvnia pair are highly likely to be banned to prevent a negative impact on the local currency, manipulations on the foreign exchange market, criminal and illegal schemes, and uncontrolled withdrawal of assets from Ukraine (both internal and external "parasites"). As for me - a completely logical decision, for martial law.

[Sir Legend]

I think this is a confusing policy, buying cryptocurrencies with foreign money for fear of the local currency dropping, if in safe conditions of course this will be easy, but when there is a war of course it is a difficult thing for citizens to buy with foreign money, it should be when receiving crypto is then automatically allowed to buy or sell with the local currency.

[Lubang Bawah]

When receiving crypto, the Ukraine government is better to manage regulations that provide convenience to its citizens to receive and buy bitcoin, the first thing to make is to make a team that can provide the most obvious information and provide legalization of exchanges so that Ukraine residents get ease instead of prohibiting residents from buying with local currency.

[stepwilli]

The purpose of this is basically putting money back in to the nation. Everyone forgets this fact but the reality is that Ukraine is not just in war and loses money because of that, it also has people who flee the country and taking their valuables with them as well. This could be money, this could be gold, this could be anything. Which means that money is leaving the nation each time someone runs away with it.

So, if crypto is allowed and legal and even supported, then we would guess that people would be bringing money back in to the nation in form of digital currency, because crypto can't be bombed, and that would certainly help the nation in the long run as well.

[tippytoes]

The purpose of this is basically putting money back in to the nation. Everyone forgets this fact but the reality is that Ukraine is not just in war and loses money because of that, it also has people who flee the country and taking their valuables with them as well. This could be money, this could be gold, this could be anything. Which means that money is leaving the nation each time someone runs away with it.

So, if crypto is allowed and legal and even supported, then we would guess that people would be bringing money back in to the nation in form of digital currency, because crypto can't be bombed, and that would certainly help the nation in the long run as well.

We need to understand that they are in crisis right now, and the government wants to contain their funds as much as possible. This action may change once they are out of the war and they are starting to re-build their economy. However, for now, they will be looking for options on how to keep those funds within their jurisdiction and not use their local fiat outside. I strong believe that things will change once this war is over.

[gantez]

I think that is a means that the government want to hold the value of their money and not to allow it to depreciate because countries that go to war have that kind of effect that the currency will fall down but maybe that is the policy to protect their economy and currency at this time of war. It will be hard times and discomfort for Ukrainians but it will not be a permanent position of the government.
Russia rubie also have that challenge and Putin is making it force to make countries buying gas and oil paying in local currency.