The Ukrainian government is moving forrad with its cardinal bank digital currency (CBDC) plans, every bit the National Bank of Ukraine (NBU) is now officially authorized to outcome a digital currency.

Ukrainian President Volodymyr Zelenskyy has signed a  police force titled On Payment Services, officially enabling the country's central bank to issue a CBDC, the digital hryvnia, according to a Th announcement.

The new law authorizes the NBU to set up regulatory sandboxes for testing payment services and instruments based on emerging technologies. The new legislation also requires shut collaboration between the Ukrainian cardinal bank and local startups in the payment market, taking into account the demand of the private sector, the proclamation reads.

Initially approved by the Ukrainian parliament in late June, the On Payment Services aims to provide the implementation of open up banking, the practice of sharing admission and command to consumer fiscal information through third-party applications. The law is expected to stimulate the development of financial technologies in the country, allowing private fintech companies to found cooperation with banks and have more business opportunities.

Among other intentions, the newly signed police force is also designed to adjust the Ukrainian legislation to the legal framework of the Eu, which would eventually allow integrating the country's payment system with the 1 of the Eu, the declaration notes. The legislation is based on modern requirements and takes into account the standards of European regulatory acts, including the Payments Service Directive 2 and the E-Money Directive.

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As previously reported, the NBU has been closely looking into issuing a digital currency over the past several years, outlining the potential of a CBDC to strengthen public confidence in the central banking company and its financial services. Still, the bank remained largely concerned nigh potential related risks like its bear on on fiscal stability and possible threats to the traditional banking system.

Before this twelvemonth, Ukraine's Ministry building of Digital Transformation entered into a partnership with the Stellar Development Foundation to jointly develop a strategy for digital assets and CBDC infrastructure.