The incumbent President of Ukraine Volodymyr Zelensky has officially endorsed a bill into law towards payment services in the country. The law now enables the National Bank of Ukraine (NBU) to create its own Central Bank Digital Currency (CBDC).
Also, the law seeks to further remove the hefty authentication process from clients who are in charge of payment services. Meanwhile, the law follows that of the European Union rules and framework. This will help join Ukraine’s payment system with the EU’s in the future.
Again, the law will exclusively help to restore and broadly reshape Ukraine’s current payment services market. In doing so, this will promote extreme innovations mainly towards the country’s financial sector.
Casting our mind back, the Ukrainian parliament accepted the payment services law on June 30. Meanwhile, authorities in Kyiv have already strived to issue a digital hryvnia long ago. Of note, Ukraine’s financial sector claims that people should use the e-hryvnia to make payments via the crypto market.
More so, the National Bank of Ukraine (NBU) will have a standardized regulatory sandbox to test new technologies, services, and tools. Specifically, all these will be done in the payments sectors.
Not only this alone, but the regulatory sandbox network will openly enable the financial regulator to socialize friendly with startups to know what they are in for.
With this said, the law governs almost nine forms of payment service providers. Starting from electronic money institutions to foreign payment institutions.