After a year of war in the country, the State Bank of Ukraine (NBU) has expressed mixed views on cryptocurrencies such as BTC.

Because of the financial and economic problems caused by the invasion, the central bank of Ukraine has both good and bad aspects of digital assets and is more skeptical about passwords, according to the NBU press office.

In April 2022, NBU banned citizens from using their own currency, UAH, to buy cryptocurrencies such as bitcoin, only through foreign currency accounts. The central bank also imposed a monthly cap on such purchases, forbidding Ukrainians from buying passwords worth more than 100,000 UAH ($3300) a month. These restrictions also apply to cross-border P2P transactions.

On March 9th, a press officer at NBU told Cointelegraph that administrative restrictions relating to cryptocurrency business in Ukraine were temporary. NBU said the restrictions would "gradually weaken with the normal functioning of Ukraine's economy and financial markets", adding:

National banks are participating in the establishment of a transparent and understandable regulatory system, which will contribute to the development of fair and efficient circulation of virtual assets.

According to regulators, specific restrictions are necessary for Ukraine to stabilize the foreign exchange market and maintain macro-financial stability.

"transactions using cryptocurrencies can be used to circumvent monetary regulation, especially as a conduit for unproductive capital flows out of the country, which currently poses a threat to macro-financial stability," said the NBU representative.

The central bank of Ukraine also sees the risk of "the substitution of national currencies and the emergence of parallel currencies". According to NBU, this risk was particularly high during the war and was beyond the effective control of regulators. "this may pose a threat to a country's monetary sovereignty," a NBU spokesman noted, adding:

"in order to minimize such risks, especially during the full-scale war, the State Bank will take a hard line in preventing the application of hryvna as Ukraine's only legitimate means of payment."

Although Ukraine's central bank was cautious about passwords during the war, it remains bullish on technological innovation related to digital assets. According to NBU, there are many password-related promises, including better access to financial services, competition in payment services, attracting investment, password donations and other benefits.

Therefore, the central bank supports the need to create civilized conditions for the development of Ukraine's virtual asset market, the NBU press office said.

NBU's latest comments came shortly after Yurii Boiko, a member of Ukraine's state securities and stock market committee, announced that the war had no impact on the authorities' regulatory stance. According to the official, Ukraine continues to follow in the footsteps of the European Union in digital assets law.