Ukraine expects a drop in bank transfers after e-hryvnia launch

After the full launch of the electronic hryvnia in Ukraine, volumes of money transfers through commercial banks are expected to fall. This was stated by participants in the ‘Digital Money’ forum, organised by AUB.

According to them, e-hryvnia will allow such operations without the intermediation of credit and financial institutions, which will eliminate the risk of funds being lost in the event of their bankruptcy.

At the same time, banks will still be able to offer clients deposits, loans and other services, including using the e-hryvnia.

In addition, they will have the opportunity to develop modern financial products, including:

• digital wallets for the e-hryvnia;
• services for customer identification;
• mobile platforms for service delivery;
• new payment methods;
• investment advisory services;
• custodial and brokerage services for users of virtual assets;
• secure smart contracts and other software products for the operation of the digital economy.

According to the forum participants, the banks best adapted to the new conditions will carve out a new niche in financial services, notably using the e-hryvnia and virtual assets.

Earlier in February 2023, the Ministry of Digital Transformation of Ukraine asked the National Bank to speed up the development of the e-hryvnia. A pilot project for launching CBDC is planned for 2024.