NBU Pushes Back Against Lawmakers’ Crypto Proposal
The National Bank of Ukraine (NBU) has firmly rejected a proposal to add cryptocurrencies to the nation’s foreign currency reserves, calling the idea premature and risky. Speaking to Interfax-Ukraine, First Deputy Governor Serhiy Nikolaychuk made the regulator’s stance clear, stressing that security is the cornerstone of reserve management.
The proposal, introduced by a group of lawmakers earlier this year, sought to empower the NBU to diversify Ukraine’s reserves with crypto. However, Nikolaychuk revealed that the central bank had not been consulted on the legislation, highlighting a disconnect between policymakers and regulators.
Risks to EU Integration and International Relations
The NBU also argued that adopting crypto reserves could jeopardize Ukraine’s bid to join the European Union. Nikolaychuk underscored the European Central Bank’s (ECB) strict stance, citing its opposition to holding digital assets in member states’ reserves.
Her remarks followed discussions with Czech National Bank Governor Aleš Michl, who had briefly entertained the idea of adding crypto to national reserves.
Bitcoin Update:
— Aleš Michl (@MICHLiq_) February 19, 2025
I’ll start broadly: if you intend to invest in crypto assets, exercise extreme caution. The market is still in its infancy. I remember the 1990s in our country, when the transition from socialism to capitalism saw the birth and simultaneous collapse of many… https://t.co/UxGF0R7NwO
Bitcoin Update:
— Aleš Michl (@MICHLiq_) February 19, 2025
I’ll start broadly: if you intend to invest in crypto assets, exercise extreme caution. The market is still in its infancy. I remember the 1990s in our country, when the transition from socialism to capitalism saw the birth and simultaneous collapse of many… https://t.co/UxGF0R7NwO
IMF Conditions Add Another Barrier
Beyond the EU’s position, the NBU pointed to conditions tied to Ukraine’s Extended Fund Facility (EFF) with the International Monetary Fund (IMF). According to Nikolaychuk, allowing crypto reserves would directly conflict with IMF requirements, potentially threatening ongoing financial support.
While the draft law would not force the central bank to buy crypto, it would grant the option to hold it as part of national reserves. For the NBU, even the possibility seems too dangerous at this stage.
Crypto’s Volatile Role in Europe
Across Europe, crypto’s place in monetary policy remains controversial. While some central bankers like Aleš Michl once suggested studying crypto as a reserve asset, many leaders reject the concept. Michl himself later admitted that crypto could be worth “either zero or a huge amount” due to volatility—a gamble central banks appear unwilling to take.
By contrast, the U.S. has seen more political momentum behind strategic Bitcoin reserves, particularly following campaign promises from former President Donald Trump. Still, European authorities remain cautious, prioritizing financial stability over speculation.
Ukraine’s Crypto Surge Amid Wartime Restrictions
Ukraine’s stance comes despite the country experiencing a surge in crypto adoption since the Russian invasion in 2022. With strict financial restrictions in place to prevent capital flight, many Ukrainians turned to digital assets as an alternative.
Yet this boom has come with risks. A recent report from a leading U.K. think tank revealed that Ukraine is losing billions of U.S. dollars annually to crypto-related crime due to the lack of comprehensive regulation. For the NBU, this reinforces why cryptocurrencies cannot yet be trusted as reserve assets, even if their domestic use continues to grow.
