The Verkhovna Rada of Ukraine is advancing into the realm of digital finance by initiating draft law No. 13356. This pivotal legislation aims to integrate “virtual assets,” including Bitcoin, into the National Bank of Ukraine’s (NBU) portfolio of reserves. Filed on June 10, during the 13th session of the ninth convocation, the bill boasts support from multiple parties, highlighting its broad appeal among Ukrainian lawmakers.
The parliamentary overview outlines that the Finance, Tax and Customs Policy Committee is the primary rapporteur on this bill, with other committees like Digital Transformation and Budget stepping in for collaborative review. This process underscores the multifaceted approach to addressing modern financial assets.
Legislative Move to Recognize Bitcoin as a Reserve Asset
An explanatory note from LigaZakon notes that this draft bill would amend existing laws to recognize virtual assets as legitimate reserve assets, conforming to international standards. This step marks a significant milestone in Ukraine’s financial evolution.
Additionally, the proposal introduces three innovative avenues for asset acquisition: direct purchases on the market, accepting income in cryptocurrencies, and borrowing from international lenders or foreign central banks. Disposal methods would also be flexible, allowing for strategies that could either stabilize the market or ensure timely repayments of liabilities.
According to Yaroslav Zheleznyak, a key advocate for the bill, the wording is intentionally non-mandatory. “This law empowers the NBU to choose how and when to incorporate virtual assets into its reserves, positioning us favorably within the rapidly evolving landscape of global finance,” he stated in an interview. He further clarified that the regulatory authority will dictate the dynamic of this new framework, emphasizing its adaptability to market conditions.
While the complete text of the bill is still pending publication, discussions around it indicate a clear and definitive effort to officially sanction the NBU’s authority to hold cryptocurrencies alongside traditional reserves such as gold, foreign currencies, and premium securities.
As of early June, Ukraine’s foreign reserves amounted to approximately $44.53 billion. Proponents of the bill argue that integrating cryptocurrency could broaden this financial umbrella, offering a buffer against possible disruptions to conventional banking systems resulting from ongoing geopolitical tensions.
If enacted, Ukraine would not be alone in this innovative move; it would join a select group of nations, currently exemplified by El Salvador, which boldly recognized Bitcoin as a reserve asset. El Salvador’s commitment is reflected in its significant holding of Bitcoin, reinforcing its position in the cryptocurrency sphere.
The next step in the legislative process involves awaiting a first-reading recommendation from the Finance Committee, which will determine its progression to further debate. Although no timeline has been set, the bill’s support from diverse factions and the lack of opposition from the NBU indicate a strong likelihood of thoughtful examination in the near future.
As of the latest updates, Bitcoin’s market price was positioned at $10,976.
