Bitcoin adoption around the world is a bit of an odd creature at best. Several countries have deemed Bitcoin a non-taxable currency while other countries want to add VAT to every Bitcoin transaction being made. Others are trying to put together regulation to “control” Bitcoin activities in their country. But, Ukraine is a different breed altogether, as the country’s National Bank want to remove any obstacles hampering Bitcoin growth.
Bitcoin and Banks – Not The Best of Friends
National and central banks are divided on Bitcoin, to say the least. While many financial institutions do not want to deal with the monetary aspect of Bitcoin – it’s volatile, too risky and it doesn’t make them any money – they do see the potential in blockchain technology powering the Bitcoin network.
As a result, Bitcoin startups and companies have a hard time securing a banking relationship. No business model can operate without easy access to funds, which have to be stored somewhere in fiat currency value. And, if banks in your country are not willing to help you out, you will have to focus your attention elsewhere.
This situation is especially dire in the United Kingdom. None of the four major players want anything to do with Bitcoin companies in terms of banking relations. However, at least two of them are looking into adopting blockchain technology for their needs and benefits, so, that situation might change in the near future.
So, this begs the question of why Ukraine’s National Bank is looking to pave the way for Bitcoin companies. Especially considering that the Ukrainian government, less than a month ago, had been considering blocking Bitcoin-related websites and shutting down digital currency platforms. Things sure move fast in the world of Bitcoin.
Paving the Way for Bitcoin in Ukraine
It has to be said, however, that Ukraine’s National Bank is not just focusing on bringing Bitcoin into the country, but, its major competitor, too, in the form of Paypal. Even though both services try to achieve something different, for the most part, it does go to show that Ukrainian government officials are paying attention to digital currency.
The special “task force” appointed to facilitate the usage of Paypal in Ukraine will be asking company officials to add their local currency – the hryvnia – to the platform. This move will aid in getting funds from abroad to Ukrainian citizens more easily, which will, in turn, boost the country’s economy as well.
One of the things that could make the process difficult is the fact Bitcoin and other digital currencies were used to fund protests in Ukraine’s capital city of Kiev last month. The civil unrest has turned many government officials into a state of “paranoia” regarding anything that is new and disruptive, regardless of how it could impact the country’s economy.
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