Recently the President has signed the “Virtual currency” law, thus legalizing cryptocurrencies. What does it mean? Will we have crypto bank cards? Will we be able to pay for groceries with cryptocoins?
The CEO of Sl8 – a Ukrainian social network – and the head of the UAF (Ukrainian Armed Forces coin) team, Dmytro Ivanov, explains.
Please tell us, what changes the new Ukrainian Virtual currencies Law?
It defines the official status, classification, and ownership of virtual currencies. It creates a climate for legal field formation, setting the suppliers list, and registration procedure. It also means new crypto sphere monitoring methods will appear. We wait until the law is enacted and the changes in the tax code.
What about crypto bank cards? Will we have crypto hryvnias?
Ukrainian CBDC (digital hryvnias) is in test mode already. Once it is launched and the Russian forces are defeated, there will be a unique situation of crypto burst in Ukraine. Millions of users will get the simplest access: KYC (authorization) will be held via Diya (the government app) in a minute. The crypto bank cards with different crypto assets will appear, too.
Will cryptocurrency be equal to the “average” one? Will we be able to pay for groceries with cryptocoins?
Not quite. The hryvnia (and digital hryvnia) will be the only official payment method. But I’m sure there will be a possibility to auto-convert most of your digital assets to hryvnia the moment you pay for goods or services. At least it is in the Sl8 backlog already.
What will it give to business and Ukraine in general?
Ukrainian businesses and startups will draw serious investments. The smaller Ukrainian investors will be the first (some studies suggest they have around $80 b of unused costs). Then the bigger ones will join. It will bring tens of billions of dollars yearly.
The Ukrainian companies and startups will be able to raise funds for their development in cryptocurrency legally. UAF became the first of such projects, based on the Sl8 social network: token-as-a-service. But instead of a startup, the funds are raised for the Ukrainian Armed Forces.
Ukraine will become the world’s first country with crypto mass adoption, and Kyiv will become the crypto capital of the world.
Thanks! Can you give some advice for crypto beginners?
If we are talking about beginners, I have some simple suggestions:
– never spend significant sums; you may learn with minimum costs;
– be ready to lose your money if you are investing. It’s part of the process. But always search for interesting and perspective projects to invest in;
– Do Your Own Research on any new project you are going to invest in;
– diversify and balance your investment portfolio;
– never stop learning; watch the trends. The crypto sphere changes and develops quickly.