Ukraine’s central bank sees both promises and threats in Bitcoin

The central bank of Ukraine sees crypto as a threat to macro-financial stability and a promising opportunity for better payments at the same time.

Categories: Cryptocurrencies

Overview

The central bank of Ukraine has recently voiced its opinion on Bitcoin (BTC) and the underlying technology which powers the cryptocurrency, blockchain. The bank sees it as both a threat and a promise; a threat to macro-financial stability, but potnetially a promising opportunity for better payments.

Threats to Macro-Financial Stability

The central bank of Ukraine is worried about the potential of Bitcoin and other cryptocurrencies to destabilize the macro-economic situation in the country. Cryptocurrencies are difficult to regulate and thus pose significant risks to the country’s financial system.

Promise for Better Payments

At the same time, the central bank of Ukraine recognizes the power of blockchain-based payments. The technology promises faster, simpler and cheaper payments, and could improve the payments infrastructure in the country. The bank is currently exploring the possibility of implementing blockchain-based payments.

Conclusion

The central bank of Ukraine has outlined its position on Bitcoin and the blockchain technology. While the bank sees potential threats to macro-financial stability, it also recognizes the promise of blockchain-based payments for better payments in the country.