However, the National Bank noted that there are a "number of factors" that may influence the timeline.
In February, the regulator had already planned to test the digital hryvnia by the end of 2024, as reported by EP.
"In particular, it is necessary to consider the readiness of financial market participants to engage in the specified pilot, as well as to identify a technological partner that will provide its technological solution for testing the e-hryvnia, which will meet the requirements of the National Bank and the architecture of the e-hryvnia, and to set up the corresponding infrastructure," the regulator explained.
As EP reported, the foundation of digital hryvnias will be based on DLT (Distributed Ledger Technology), and anyone interested will be able to test them, as this will take place "in an open environment with real users and payment service providers."
"The goal of the pilot is to test the e-hryvnia to determine the technological prospects for fulfilling the functions of money, meeting the needs of payment service users, and verifying hypotheses regarding programmability," the NBU added.
The e-hryvnia project – the electronic form of Ukraine's monetary unit – was initiated by the National Bank in 2021, as stated on the NBU's website. The third form of money will complement cash and non-cash forms.
"The e-hryvnia could positively impact the economic security of the state, enhance the monetary sovereignty of the country, and enable the National Bank to maintain price and financial stability as a prerequisite for sustainable economic growth," the NBU's website states.
The regulator noted that it is currently considering the following possible uses of the e-hryvnia, which will influence its design and key characteristics:
- e-hryvnia for retail cashless payments with possible "programmable" money functionality;
- e-hryvnia for use in the field related to the circulation of virtual assets;
- e-hryvnia to enable cross-border payments.
According to EP, central banks may program the digital hryvnia, meaning that these funds can be programmed for purchases of only specific types of products or for payment of only certain services.