New laws in Ukraine have restricted the usage of fiat money, which will help the crypto economy. The National Bank of Ukraine had to impose certain new rules because the ongoing military conflict with Russia had changed the country’s core financial situation.
NBU has now decreased the Hryvnia’s value in reference to the US dollar by 25%. The bank has also added new limitations on banking activities. The choice to alter the Hryvnia exchange rates to US dollars and restrict the amount that may be traded may help the crypto market expand.
To get around Fiat restrictions, consumers may soon decide to convert to cryptocurrencies. These Fiat constraints will benefit the bitcoin economy, according to a local cryptocurrency sector spokeswoman in Ukraine.
According to the modified laws, banks may only provide non-cash foreign currency to clients who have deposited the entire purchase price for at least three months without the option to back out.
As part of the restrictions, the 50,000 Hryvnia withdrawal cap has been changed to a weekly cap of 12,500 ($340). Additionally, Ukrainian banks have reduced the threshold for peer-to-peer transfers using credit cards from 100,000 to 30,000 hryvnia.
Even the cross-border payment cap per month has been set at 100,000. However, it seems as though the restrictions are only momentary in nature. Kirill Shevchenko, governor of the NBU, has said that these measures are just temporary.
All of these actions have been made in an effort to maintain the economy. The Ukrainian people have suffered a great deal as a result of these actions. Millions of Ukrainian citizens were forced to leave their country and are currently fighting to return. Due to the restrictions, it is now harder for citizens to return to Ukraine.
Crypto interest has lately surged due to National Bank of Ukraine rules.