Ukraine Central Bank: Bitcoin Is Not a Legal Method of Payment

Ukraine Central Bank: Bitcoin Is Not a Legal Method of Payment

In Ukraine, The National Bank has given a big NO to cryptocurrencies like Bitcoin, this is according to a statement issued by Oleg Chury, the deputy G

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In Ukraine, The National Bank has given a big NO to cryptocurrencies like Bitcoin, this is according to a statement issued by Oleg Chury, the deputy Governor of the Central Bank of Ukraine. Speaking at a financial forum in Ukraine, he also said that the said cryptocurrencies will not be recognized as legal methods of settling debts. Some countries like Japan, however, have taken a more liberal stand and have begun to accept bitcoins. FinClub, a regional publication quoted him saying “The lack of a central issuer is a big concern for us and therefore renders it a non-currency and we do not recognize it as a means of payment.”

The key issue the banker raised with bitcoins and other cryptocurrencies is the lack of a central issuer, which is why the central bank of former Soviet republic is hesitant in accepting them as a method of payment. This, according to the banker makes them a target to fraudsters but went on to dismiss that they were a threat to central banks.
The CEO of JP Morgan and Jamie Dimon, a noted bitcoin critic have previously shared similar sentiments regarding cryptocurrencies and even warned that the more they grow, the higher the possibilities of the government closing on them. In a past statement, Dimon compared bitcoin which moves 2 to 3 billion dollars to JP Morgan which moves 6 trillion dollars a day, a comparison that was seen to belittle bitcoin. According to CIA data, the cryptocurrency would rank at no. 46 if it was to be summed up as a narrow/liquid money supply (M1). Bitcoin is currently worth $62 billion in market capitalization.
Even though the Ukraine National bank does not officially recognize cryptocurrencies, it has also revealed that they are looking into the possibility of developing a framework that will allow their use in the future within appropriate legal and regulatory frameworks.

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