Ukraine Central Bank Suspends Electronic Money Transfers

Daniel Attoe
Daniel Attoe

Updated · Feb 25, 2022

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The ban is one of the restrictive measures implemented by the apex bank following a declaration of martial law.

Suspending E-Money

The National Bank of Ukraine has banned digital money transfers in the country in the middle of an ongoing invasion by Russia. The apex bank gave a written order suspending both the issuance of electronic money and transfers to electronic wallets by issuers.

According to CNBC, the orders are likely to involve fiat money held in digital forms, such as in PayPal accounts. 

This action is one of the measures that the central bank is using to limit the flow of money. It also banned payments to Russia and Belarus. 

In a statement released on Friday, the regulatory body said that the crackdowns are a means to ensure that Ukraine’s financial system continues to function. 

The order came a day after the regulator limited daily cash withdrawals in the country to 100,000 hryvnias ($3,350). Furthermore, the National Bank has suspended the foreign exchange (Forex) market and suspended the withdrawal of foreign currency in cash from customers’ accounts.

Cryptocurrency?

There is currently no indication that it includes funds held as cryptocurrency. Late last year, Ukraine said that it would begin a test of a digital version of its currency. The Central Bank Digital Currency (CBDC), it said, would be built and tested on the Stellar network, an open-source decentralized protocol.

Before the invasion by Russia, Ukraine was a driving force for Bitcoin and cryptocurrency adoption.

Sources.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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