NBU does not plan to include virtual assets in international reserves: 4 reasons why not
A draft law on Ukraine's crypto reserve has been registered in the Rada. However, the National Bank believes that such changes would be premature.
A draft law on Ukraine's crypto reserve has been registered in the Rada. However, the National Bank believes that such changes would be premature.
This was stated by the First Deputy Chairman of the NBU, Serhiy Nikolaychuk, in an interview with Interfax-Ukraine.
Nikolaychuk named 4 reasons why the NBU does not plan to include virtual assets in international reserves.
Firstly, in his opinion, the vast majority of cryptocurrencies remain a high-risk asset, while the key principle of international reserve management is safety.
"Sharp drops and surges in the exchange rate value of virtual assets will negatively affect the total volume of reserves. This will at least complicate their use as a tool for maintaining confidence in the national currency, maintaining control over exchange rate expectations, ensuring price stability and macro-financial stability," the First Deputy Chairman of the NBU believes.
Secondly, Nikolaychuk noted that currently in the world there is no clear and unambiguous understanding of the essence and classification of virtual assets, and accordingly, a sufficiently unified legislative regulation of transactions with them.
“Yes, some countries include such assets in reserves, but these are rather exceptions,” he adds.
Thirdly, such changes may undermine Ukraine's European integration process.
"The European Central Bank has a fairly clear position - it considers it unacceptable to include crypto assets in the reserves of central banks of EU countries. Reserves must be liquid, safe and secure," says Nikolaychuk.
Fourth, such changes will not meet the requirements of the Technical Memorandum within the framework of the Extended Fund Facility with the IMF, the First Deputy Governor of the NBU concluded.
We will remind you that in June, deputies registered in the Rada draft law No. 13356 on amendments to the Law of Ukraine "On the National Bank of Ukraine" regarding the inclusion of virtual assets in Ukraine's gold and foreign exchange reserves.
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