There has been a surge in interest in the use of virtual currencies recently.

Throughout this year domestic financial market players have been exploring the possibility of using virtual currencies in Ukraine. To this end, conferences and meetings have been held by the banking community.

Up until now, the international financial institutions and central banks have not adopted a concerted stance on the use of virtual currencies. At the same time, the banking community, in particular, representatives from central banks who have recently participated in the CPMI-World Bank Retail Payments International Forum, which was held in Istanbul, underline that the use of virtual currencies should be subject to close monitoring by public regulators and their potential relevance for retail payments needs to be revisited by financial and supervisory authorities. According to experts from the World Bank, monitoring of payments-related developments in virtual currency schemes should fall within the competence of the central bank’s subdivisions responsible for overseeing payment and settlement systems.

In its research report entitled “Virtual currency schemes – a further analysis”, the European Central Bank has failed to take an unambiguous stance on the use of virtual currencies and has advised financial institutions against using virtual currencies in their financial transactions. 

Guided by the adequacy principle, the National Bank of Ukraine keeps a close eye on the development and usage of new payment services and believes that new players should be given a chance to enter the market, but the top priority should be attached to ensuring the security of payments.

The National Bank of Ukraine, together with other EU central banks, warns banks, payment organizations, payment system participants and holders of virtual currencies of the risks and potential threats associated with the use of virtual   currencies. The National Bank of Ukraine disclaims any responsibility or liability for possible risks and losses associated with settling transactions in virtual currency.

With a view to protecting the rights of consumers and ensuring the security of the execution of funds transfers, the National Bank of Ukraine recommends that the citizens use the services provided only by those payment and settlement systems that are listed in the Register of Payment Systems, Settlement Systems, Their Participants and Operators of Payment Infrastructure Services. 

The National Bank of Ukraine is set to keep a close eye on the launch of innovative products in the payments industry and look into policies pursued by the central banks and public institutions of other countries with the aim of adopting the rules and regulations governing virtual currencies in the European and global context.