Ukraine Proposes Bitcoin (BTC) to Become Part of the National Reserves

The Ukrainian parliament recently proposed a draft law that would allow Bitcoin digital assets to become part of the National Bank of Ukraine's (NBU) gold and foreign currency reserves.

Lawmakers in Ukraine have proposed a draft law that would allow Bitcoin (BTC) digital assets to become part of the National Bank of Ukraine’s (NBU) gold and foreign currency reserves.

The initiative, put forward on June 10 with draft law no. 13356 to amend the NBU law, proposes an addition to Article 14 of the Law of Ukraine ‘On the National Bank of Ukraine’ to include the following:

“The foreign currency assets of the National Bank of Ukraine can also be replenished with the assets of bitcoin digital assets, other types of virtual assets, and the bank’s operations in their management are carried out in accordance with the legislation of Ukraine.”

This draft law is a significant step towards the adoption of cryptocurrencies at the state level in Ukraine, which is currently facing significant economic challenges due to the ongoing war with Russia.

The draft proposes including Bitcoin (BTC) and other virtual assets in the composition of gold and foreign exchange reserves managed by the National Bank of Ukraine (NBU).

It will now be up to the NBU to decide on purchases of such assets, while the government will not be involved in this process, noted Yaroslav Zhelezniak, an MP from the European Solidarity faction, via his Telegram channel.

What Is Special About This Addition?

This addition is part of a broader move by countries to integrate cryptocurrencies into their financial systems. In the United States, for instance, there has been increased interest in cryptocurrencies following the launch of Bitcoin Exchange Traded Funds (ETFs) earlier this year.

Moreover, countries such as El Salvador have already adopted Bitcoin (BTC) as legal tender, leading to a surge in foreign investment in the Central American nation.

Meanwhile, Switzerland, Brazil and the Czech Republic are also reportedly considering similar reserve strategies for bitcoin and other cryptocurrencies.

If approved, Ukraine could become the first European country to formally integrate virtual assets into its national reserves, potentially setting a precedent for other war-torn or economically distressed countries.

What Is the Impact of This Integration?

According to Yaroslav Zhelezniak, this move will bring Ukraine closer to the technologies of the new world and best practices in managing state finances.

In an era of global macroeconomic instability, having BTC reserves could be advantageous as the strength of the US dollar may diminish.

Furthermore, proper management of crypto reserves will help strengthen macroeconomic stability and create new opportunities for the development of the digital economy.

The bill is currently being reviewed by the Verkhovna Rada’s economic policy committee, and a stage of public consultation will follow.