Ukraine Plans to Legalize Bitcoin and Blockchain Technology

While many Bitcoin enthusiasts feel that regulation can destroy the prospect of virtual currency, several countries around the world are approaching the delicate matter from a different angle.  Ukraine, for example, may be one of the first countries in the world to give Bitcoin a proper legal status, while the country’s National Bank wants to experiment with blockchain technology.

Legalizing Bitcoin in the UkraineBitcoin Foundation Ukraine

Bitcoin is many things, but first and foremost, it remains a new breed of technology to offer financial innovation on a grand scale.  It is no surprise to discover that quite a few major banks are actively exploring the benefits of Bitcoin technology.  Once the blockchain becomes a part of everyday life, Bitcoin could be the next big thing in terms of frictionless payments around the globe.

Giving Bitcoin a proper status in terms of legality can only occur through an open dialog between all parties involved.  On August 19th of 2015, the Ukraine Bitcoin Foundation and National Bank of Ukraine created a joint effort to tackle this delicate hurdle.  Representatives from both sides educated one another on how they see the future of Bitcoin in the country and the results seem positive so far.

Even though the National Bank of Ukraine’s Payment Services Department had a pretty good understanding of Bitcoin technology already, the meeting with the Ukraine Bitcoin Foundation helped fill in a few of the remaining blanks.  Furthermore, there were quite a few other departments with the National Bank of Ukraine who could benefit from familiarizing themselves with this new technology.

“Ukraine became the third country in the world after the UK and Canada, where the central bank decided to study the prospects of cryptocurrency in developing new financial technologies.  This will ensure that we maintain our current leading position in the world of Bitcoin.  I would conclude that the meeting was very positive, so the future is bright for Bitcoin in Ukraine.” – Michael Chobanian, founder of Kuna Bitcoin Agency, told DigitalMoneyTimes.

Main Focus on Blockchain TechnologyNational Bank of Ukraine

As was to be expected, the National Bank of Ukraine seemed mostly interested in using the blockchain technology powering the Bitcoin network.  Doing so allows the transfer of funds around the world in mere seconds, at a fraction of the current costs.  Blockchain technology offers a positive outlook, for both consumers and financial institutions alike.

What makes Ukraine different in this regard is how all parties fully understand there is no way to control the technology in a centralised manner.  Whereas this conclusion seems to scare government officials around the world, Ukraine seems to embrace the idea of decentralized technology used be the general population.

Whether or not Bitcoin will be legalized as a currency in Ukraine, is a different matter altogether.  However, this is a first “victory” for Bitcoin and its underlying technology.  We can only hope to see more countries take this approach in the near future, to reduce the risk of having another regulatory framework pushing Bitcoin businesses away, as BitLicense is doing.

Source: News Tip Via Email

Images courtesy of Ukraine Bitcoin Foundation, National Bank of Ukraine, Shutterstock