Ukraine Rules Out Crypto as Legal Tender, Sets Strict Boundaries

Highlights:

• Ukraine has ruled out crypto as legal tender and has set strict rules to protect monetary stability.
• NBU plans a pilot with global banks to test its use in Ukraine’s national payment systems.
• Lawmakers have proposed a bill to allow NBU to add Bitcoin and other cryptocurrencies to its national reserves.

The National Bank of Ukraine, headed by Andriy Pyshnyy, has clearly defined its stance on the role of cryptocurrencies. Governor Andriy Pyshnyy stated that virtual assets cannot replace the national currency or serve as a means of payment. He called this a “red line” to protect monetary stability and preserve the effectiveness of monetary tools. He stressed that any legal framework for digital assets must avoid weakening the central bank’s authority.

Ukraine's central bank governor has set firm boundaries for crypto legalization, declaring that virtual assets can't be a legal tender. Governor Pyshnyy stressed that crypto must not undermine monetary policy or be used to circumvent currency restrictions. Meanwhile, the NBU is… pic.twitter.com/oSLxTn2kbK

— CryptoniteUae (@CryptoniteUae) August 8, 2025

Pyshnyy clarified that legalization could not give monetary powers out of the NBU. Cryptocurrencies, he observed during martial law, must not be used to evade currency restrictions. These precautions are paramount in stabilizing the economy under a state of war. He stressed that this regulation should adhere to the standards of the Financial Action Task Force (FATF) and be consistent with the MiCA framework of the European Union.

He also underscored the importance of oversight to prevent illicit activity. Strong monitoring systems would ensure that the crypto sector operates within legal boundaries. Pyshnyy’s remarks set clear expectations for the development of Ukraine’s digital asset market.

Ukraine Rules Out Crypto as Legal Tender While Considering Legalization Path

The governor made it clear that cryptocurrencies will not gain legal tender status in the country. He warned that allowing crypto for payments could disrupt currency stability and interfere with the NBU’s ability to manage monetary policy. The central bank considers these risks incompatible with maintaining financial security.

Although payments in crypto are off the table, the NBU is open to a regulated digital asset market. Pyshnyy said “de-shadowing” the sector could boost Ukraine’s credibility with global financial partners. Increased transparency could also prevent unmonitored transactions and strengthen the country’s financial reputation.

In June, lawmakers introduced a bill allowing the NBU to include Bitcoin and other cryptocurrencies in national reserves. The proposal would allow the central bank to diversify its assets while being guided by strong internal controls. The bill is set to be reviewed by the Verkhovna Rada. Nonetheless, political tensions have halted its progress. Although some officials consider it a modernization step, others are cautious about the risks.

NBU Advances e-Hryvnia Pilot With Global Central Bank Partnerships

In addition to its crypto policy, the NBU is proceeding with its central bank digital currency (CBDC) project. Pyshnyy affirmed that the bank is working on a pilot of e-hryvnia in collaboration with a technology partner. The test will evaluate technical systems and understand how the CBDC might work in national payments.

💸The National Bank of Ukraine understands the potential e-hryvnia architecture model. Preparations are underway for a pilot project using a digital form of the non-cash hryvnia, and the search for a technological partner is being completed. Details👇🏻https://t.co/13eGe2g57Y pic.twitter.com/8SmX1EYanG

— Rubryka – Solutions from Ukraine (@RubrykaEng) August 7, 2025

The NBU is cooperating with major institutions, such as the European Central Bank and the Bundesbank. The purpose of these partnerships is to share expertise and synchronize strategies. Ukraine is keeping a close eye on the Digital Euro initiative to make it compatible with its European integration agenda.

Pyshnyy noted that a large-scale launch would depend on essential information that would be given by the pilot. Although a specific deadline has not been set, the e-hryvnia is a central aspect of the digital agenda of the NBU.