1. Expanding the central bank's powers:
Ukrainian deputies (led by Yaroslav Zelenskyak) presented a bill (No. 13356) on June 10 to amend the Ukrainian central bank law.
The law aims to grant the central bank the legal authority to add digital assets such as Bitcoin to its national reserves, alongside gold and foreign currencies.
Important: This authority is optional; the law does not obligate the central bank to purchase or own these assets but merely provides the legal basis to do so if it decides.
2. Flexibility in application:
The central bank will have complete autonomy in deciding whether to include these assets, when to do so, how to do it, and how much to include in its reserves.
3. Update the financial strategy:
This project is a step toward updating Ukraine's reserve strategy and keeping pace with global financial innovation.
It reflects an increasing trend to integrate digital assets into public financial affairs, aiming to enhance reserve diversification and the economy's long-term resilience.
4. Comprehensive legal framework in preparation:
Ukraine is simultaneously working (with the support of the central bank and the International Monetary Fund) on drafting comprehensive legislation to regulate digital assets.
This law will treat virtual assets similarly to securities, establishing a tax system (tax is imposed when converting assets to traditional currency).
The bill is expected to be submitted after the New Year, with discussions on oversight and anti-money laundering mechanisms expected to be completed, and a vote on the first reading anticipated in the first quarter of 2025.
5. Potential sovereign Bitcoin reserve (separate plan):
A separate bill is also being prepared to establish a national Bitcoin reserve as part of the financial system update.
Zelenskyak (Vice Chairman of the Finance Committee) confirmed that this legislation is in preparation and will be presented soon.
If passed, Ukraine will be the first European country to officially adopt Bitcoin as a sovereign asset, following in the footsteps of countries like El Salvador, Switzerland, and Brazil, which could enhance long-term financial stability and open new developmental horizons.
In summary: Ukraine shows a strategic move towards integrating digital assets, starting by granting its central bank the legal option to include them in its reserves, moving through establishing a comprehensive regulatory framework, and planning to create a sovereign Bitcoin reserve, in an effort to enhance the modernity of its financial system and economic resilience, as well as its regional leadership in this field.