Better than crypto — why the e-UAH is beneficial for Ukrainians

The digital currency (e-UAH) will operate on the same level as cash and non-cash payments in the financial market in Ukraine. Digital money will be stored directly with the National Bank, which will help the currency to be stable.

It was said by Oleh Pendzyn, the Member of the Economic Discussion Club, on the air of the program Den.LIVE.

How the e-UAH will function

According to him, with the introduction of the e-UAH, Ukrainians will be able to make payments in a split second.

"If all transactions take place within the same bank, and this bank is the National Bank of Ukraine, then those transactions are instantaneous. Today we submit a payment and can wait a day, but with the electronic UAH, it will be a split second. It’s convenient, and the National Bank guarantees that information on personal data will be private," he said.

Pendzyn added that the electronic UAH can also be used to fight corruption, as transactions made with the digital currency can be traced.

Will cash disappear in Ukraine after the introduction of the e-UAH?

Recently, Oleksii Shaban, the Deputy Governor of the National Bank of Ukraine, assured that the regulator does not plan to ban citizens from paying in cash. At least during the war, Ukrainians do not face such restrictions, as in the face of Russian aggression, Ukrainians should have access to quick cash.

The e-UAH will be used for various transactions. For example, digital money can be used to pay for goods and services, make charitable payments, etc.

As a reminder, the NBU is already working on a pilot project to launch the e-UAH. However, the decision to issue a large-scale retail digital currency (CBDC) has not yet been made.

Also, Novyny.LIVE has already explained that the electronic UAH will not change the everyday life of citizens. But Ukrainians will be able to choose how to make payments.