Ukraine’s Central Bank Shuts Door on Crypto as Payment Method

The National Bank of Ukraine has declared that cryptocurrencies will never serve as payment methods in Ukraine. Governor Andriy Pyshnyy confirmed that only the hryvnia remains the country’s legal tender.

The central bank has established what it calls a “red line” regarding virtual assets. Pyshnyy stated that cryptocurrencies cannot function as payment instruments on Ukrainian territory and must not weaken the NBU’s monetary policy tools. The NBU governor also emphasized that any virtual asset legalization must protect the central bank’s authority. 

Virtual assets cannot be a means of payment, nor can they undermine the effectiveness of our monetary instruments. There must be no transfer of monetary powers or weakening of the National Bank’s capabilities,

Pyshnyy said.

The bank remains open to regulated virtual asset use but maintains strict conditions. Any legalization framework must preserve price stability, maintain financial monitoring capabilities, and prevent circumvention of wartime currency controls that protect Ukraine’s gold and foreign currency reserves.

Pyshnyy warned that legalization must not expand the shadow market. He said future legislation should follow international FATF standards and European Union MiCA directive rules, which took effect in January 2025. The MiCA framework provides flexibility for national cryptocurrency regulation.

The NBU is also developing a pilot program for an electronic hryvnia to complement physical cash and traditional bank accounts. However, Pyshnyy said it remains too early to establish a timeline for launching a retail central bank digital currency, as the pilot project is still in planning stages.

Ukraine’s virtual asset legislation faces ongoing delays. Parliament passed Law No. 2074-IX in February 2022, but implementation awaits Tax Code amendments. Officials continue working on an updated draft bill expected to be completed by the end of 2025

The revised legislation aims to align Ukraine’s cryptocurrency framework with European standards while strengthening consumer protection and market oversight mechanisms.