The NBU is preparing a pilot project for the introduction of e-hryvnia: here's how electronic money will function.

The National Bank of Ukraine is examining the feasibility of introducing its own retail digital currency (CBDC) - the e-hryvnia. A pilot project is currently in preparation.

This information was reported by RBK-Ukraine citing the Deputy Head of the NBU Aleksey Shaban.

As Shaban noted, the e-hryvnia is intended to complement cash and funds held in accounts. It will not replace them but will serve as an additional option that can be used at one's discretion.

"However, as of today, a decision on the large-scale issuance of the e-hryvnia has not yet been made," said the Deputy Chairman of the NBU.

According to him, a pilot project, which is already underway, could assist in making such a decision. It is planned to be conducted based on DLT (Distributed Ledger Technology) and in an open environment, meaning with real users and payment service providers. This will help ascertain whether the e-hryvnia can fulfill money functions, meet user needs, and demonstrate effective programmability.

What is the e-hryvnia

Shaban stated that the e-hryvnia is the digital currency of the NBU, an electronic form of Ukraine's monetary unit, issued by the National Bank. This definition is included in the Ukrainian law "On Payment Services."

"So, it is the same hryvnia, just in digital form. Like physical (cash) money, it is a liability of the central bank," explained the Deputy Head of the NBU.

If a decision is made to introduce it, the e-hryvnia will be a legal payment instrument in Ukraine and will exist only in cashless form - as a supplement to both cash and cashless forms of money. It is expected to fulfill all functions of money and be accessible for all user categories without exception.

It is anticipated that users will have the ability to conduct all possible types of payment transactions in Ukraine using the e-hryvnia, specifically:

• transfers between individuals (transfers between user wallets);
• payment for goods and services;
• payments to the government;
• charitable payments;
• receiving salaries and other income, social payments.

As a reminder, as of January 1, 2025, there are 2.6 billion banknotes in circulation totaling 814.3 billion hryvnias, as well as 14.8 billion coins (excluding commemorative and investment coins) amounting to 7.96 billion hryvnias.

At the beginning of this year, there were: 63 banknotes and 186 payment change and circulation per resident of Ukraine.