Ukrainian Lawmakers Propose Bitcoin (BTC) and Cryptocurrency Reserve

Yaroslav Zheleznyak, the People’s Deputy of Ukraine, confirmed that Ukrainian legislators are pushing for a Bitcoin (BTC) and cryptocurrency reserve.

Yaroslav Zheleznyak, a People’s Deputy of Ukraine and an economist, has confirmed that Ukrainian legislators are pushing for a Bitcoin (BTC) and cryptocurrency reserve.

Taking to his Telegram channel, Zheleznyak claimed that several members of the parliament had initiated a draft law proposing amendments to the rules governing the National Bank of Ukraine (NBU). The changes, if approved, would authorize the central bank to purchase Bitcoin and other cryptocurrencies.

Integration of Bitcoin and Cryptos in Ukraine’s Treasury Reserve

The amendments, introduced as part of draft law no. 13356 during the 13th session of the Verkhovna Rada, Ukraine’s unicameral parliament, aim to integrate Bitcoin, in addition to gold and foreign reserves, to diversify the country’s treasury.

The integration of cryptocurrencies in the treasury is a measure that several economists and politicians have advocated for in recent months. The proponents, including members of the US Congress and Swiss politicians, believe that it is an essential step in adapting to the evolving financial landscape and addressing the nation’s economic challenges.

In contrast to several developed economies like the US, Switzerland, and Vietnam, which have already authorized their central banks to hold cryptocurrencies, Ukraine does not currently permit it. Existing laws only permit the country’s central bank to hold gold and foreign currencies, such as the US dollar, in its reserves. As of this month, NBU reported $44.5 billion in international reserves.

If passed, the law would authorize the NBU to purchase Bitcoin and other cryptocurrencies as part of the state’s reserves. However, it leaves the central bank to independently decide whether such a measure is necessary or if it aligns with its existing monetary policies. The bill does not prescribe a specific allocation for these digital assets, leaving the matter at the discretion of the institution.

The proposed amendments have also reportedly secured significant support from Ukrainian lawmakers. Yet, the NBU is still assessing its position on the subject, according to Zheleznyak. The final decision will rest with the central bank, the parliament member added.

According to Groupe d’études géopolitiques (GEG), cryptocurrencies have played a crucial role in the war economies of Ukraine and Russia. The speed and decentralized nature of these assets have enabled both countries to easily raise funds and transactions as their conflict has crippled many payment rails and other key financial infrastructures.

Russia also capitalized on these advantages to circumvent international sanctions, especially its exclusion from the SWIFT system. Since the beginning of the war in February 2022, Russia has reportedly received about $1.5 billion in cryptocurrency donations, while Ukraine has obtained approximately $300 million in donations in BTC and other cryptocurrencies.