The fixed exchange rate for the Ukrainian national currency has been adjusted to U.S. Dollars and stricter restrictions have been placed on transactions in hryvnia by the central bank. According to a representative from the local crypto sector, these measures will likely convert more Ukrainians to cryptocurrency.
The War-Time Hryvnia Limits are Expected To Increase Cryptocurrency Interest
In response to changes in the economy of Ukraine during the ongoing conflict with Russia, the National Bank of Ukraine ( NU) introduced new rules. On Thursday, the monetary authority decreased the value of the Ukrainian hryvnia to the stronger U.S. dollar by 25% and set new limits for banking operations using the national fiat.
The updated regulations to private individuals, which were implemented July 21, state that banks cannot sell non-cash foreign currencies to customers if they have deposited the funds for at least three months without the option to end the contract.
A weekly limit of 12,500 dollars ($340) has replaced the 50,000-hryvnia withdrawal limit from payment cards. The amount of peer-to-peer international transfers from cards issued by Ukrainian banks has been reduced from 100,000 hryvnia to approximately. $2,700 to 30,000 Hryvnia ($800). The limit on cross-border settlements using hryvnia card cards is 100,000 per month.
Kirill Shevchenko, NBU Governor, stated that all the measures taken since the start of the war were temporary and will allow the economy to continue to function. They are nonetheless a serious problem for Ukrainians, particularly those millions of citizens who were forced to flee the country but are unable to return.
According to Mikhail Chobanyan , founder of Kuna’s Ukrainian crypto exchange, cryptocurrencies may be attracting more interest from Ukrainians. He commented on Forklog, a crypto news outlet. We expect an increase in the use and turnover of cryptocurrency. The entrepreneur said that 100,000 hryvnias in Europe is nothing.
Chobanyan noted that volunteers will be hindered by the new restrictions, as most humanitarian assistance is paid for with cards issued by Ukrainian banks. Chobanyan stated that the central bank will now switch all flows to crypto. He warned that the state budget and Ukrainian banks will lose.
