Ukraine is taking an important step towards adding Bitcoin to its national reserves.
On June 10, the Ukrainian Parliament received a draft bill proposing an amendment to the National Bank of Ukraine (NBU) asset reserve policy. This change allows central banks to add cryptocurrency to their reserves along with gold and foreign currency.
Ukrainian Parliament member Yaroslav Zhelezniak confirmed the move and emphasized that effective crypto-preparation management could increase the stability of Ukraine’s macroeconomics and promote the growth of the digital economy.
Meanwhile, he pointed out that lawmakers do not specify accurate preparatory management tactics. Instead, the bill empowers central banks to act as they appear appropriate.
He wrote in the telegram:
“We give the national bank the right to include virtual assets in Ukraine’s reserves, but it shows that it is a decision of the regulator itself, when and how much money is needed.
Ukraine’s movements are in line with a wider global trend in which countries like El Salvador are already accumulating Bitcoin reserves. Other countries, including the United States, Pakistan, Kyrgyzstan and the Czech Republic, are considering similar strategies.
Why central banks could reject Bitcoin?
Despite growing interest, experts warn that Bitcoin’s suitability to central bank reserves faces a serious hurdle.
Swiss digital asset institution Sygnum Bank has issued a report warning that an increasing concentration of Bitcoin among corporate holders such as Strategy (previously Micro Strategy) could prevent central banks from accepting top-level crypto.
According to the company:
“Too much supply (corporate bitcoin holder) will undermine BTC’s safe shelters. Private companies that manage most of their existing supply will inappropriate Bitcoin to hold as a reserve asset by central banks.”
The bank also noted that central banks prioritize liquidity and price stability when selecting reserve assets. We noted that potential price fluctuations caused by liquid Bitcoin shrinkage pools and large corporate holders could reduce the appeal of assets to official reserves.