Ukraine’s Strategic Move: Introducing Bitcoin to NBU Reserves
Overview of the Legislative Proposal
In a significant development, Ukraine’s Verkhovna Rada has introduced draft legislation, No. 13356, aiming to integrate “virtual assets” such as Bitcoin into the National Bank of Ukraine’s (NBU) gold-and-foreign-currency reserves. This proposal, filed on June 10 during the 13th session of the ninth convocation, signifies a progressive step towards embracing financial innovation. The bill is sponsored by eight cross-party members, including Yaroslav Zheleznyak, the first deputy finance-committee chair.
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Role of Committees and Bill Examination
The parliamentary bill card reveals that the Finance, Tax, and Customs Policy Committee has been appointed as the primary rapporteur, while the Digital Transformation, Budget, Anti-Corruption, and EU-Integration committees have been assigned as co-reviewers. This collaborative approach underscores the multifaceted impact of the bill on Ukraine’s economic landscape.
Details of the Draft Law
As per the explanatory note on the LigaZakon legal portal, the proposed legislation seeks to classify virtual assets as internationally recognized reserve assets under Ukraine’s 1999 Law “On the National Bank of Ukraine.” It introduces three new pathways for acquiring these assets: direct market purchases, receiving income in virtual assets, and borrowing virtual assets from multilateral lenders or foreign central banks. Additionally, it permits the disposal of these assets through open-market sales for monetary-policy purposes or by settling virtual-asset liabilities with official creditors.
Flexibility and Discretion for the NBU
Yaroslav Zheleznyak emphasizes the permissive nature of the bill, highlighting that it grants the NBU the option, not the obligation, to include virtual assets in Ukraine’s reserves. He explained to Korrespondent.net that the decision on how, when, and how much to incorporate remains entirely with the regulator. In a statement to LIGA.net, he reiterated that the bill’s language is deliberately broad to offer flexibility.
Current Status of the Bill
While the full text of the bill is not yet published on the Rada portal, legal sources indicate its absence as of June 18. However, the draft is a significant legislative effort to empower the NBU with the authority to hold Bitcoin alongside existing reserve assets, including monetary gold, IMF Special Drawing Rights, foreign-currency cash, and high-grade securities.
Potential Impact on Ukraine’s International Reserves
According to NBU data reported by Sudova Yurydychna Hazeta, Ukraine’s international reserves stood at $44.53 billion as of June 1. Proponents argue that incorporating cryptocurrency could diversify these reserves and offer an alternative settlement method if traditional channels face disruptions due to wartime contingencies.
Global Context and Future Prospects
If enacted, this legislation would position Ukraine among a select group of nations permitting Bitcoin as a reserve asset. Currently, El Salvador is the only country with a disclosed strategic holding of over 6,200 BTC. The draft now awaits a first-reading recommendation from the Finance Committee before it can be slated for plenary debate. Although no specific timetable is set, the cross-factional sponsorship and lack of central bank objections indicate that the proposal will likely receive thorough consideration in the coming months.
Current Market Status
At the time of writing, Bitcoin was trading at $10,976, as per TradingView.com, showcasing its dynamic nature in the global financial markets.
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