The National Bank of Ukraine (NBU) has adjusted the fixed exchange rate of the national currency to the US dollar, placing stricter restrictions on hryvnia transactions for citizens. The measures are likely to convert more Ukrainians to cryptocurrency, according to a representative of the local digital sector.
The restriction of the “hryvnia” is expected to increase interest in cryptocurrencies
The National Bank of Ukraine (NBU) has introduced new rules in response to the changing fundamentals of the country’s economy during the ongoing military conflict with Russia.
The monetary authority devalued the Ukrainian “hryvnia” once morest the dollar by 25%, and placed new restrictions on banking operations with the national currency.
According to the updated regulations for individuals, implemented on July 21, banks can sell non-cash foreign currencies to their customers only if the amounts have been deposited for at least three months, without the option of terminating the contract.
The ceiling of 50,000 hryvnias for withdrawals from payment cards has also been replaced with a weekly limit of 12,500 ($340).
Transfers abroad from cards issued by Ukrainian banks were reduced from 100 thousand hryvnia (regarding 2700 US dollars) to 30 thousand hryvnias (800 US dollars). The maximum limit for cross-border settlements with hryvnia cards has been set at 100 thousand per month.
For his part, Governor of the National Bank of Ukraine Kirill Shevchenko stressed that all measures introduced since the beginning of the war are temporary and allow the economy to survive. However, they seriously affect Ukrainians, especially those millions of citizens of the nation who were forced to leave the country and are still not able to return.
In the same context, the restrictions of the National Bank of Ukraine may increase the interest of Ukrainians in cryptocurrencies. “We expect an increase in the turnover and use of cryptocurrencies,” commented the founder of the Ukrainian Kuna Crypto Exchange, Mikhail Chubanyan, noting that 100 thousand hryvnia is nothing in Europe.
Choubanyan also noted that the new restrictions will hamper the work of volunteers, as most humanitarian aid is purchased with cards issued by Ukrainian banks and owned by individuals. “Now we will completely convert these flows into digital currencies,” said Chobanyan, who described the central bank’s policy as strict and warned that Ukrainian banks and the state budget would be the losers.
Source: Bitcoin.com
