Ukraine Prepares To Legalize Bitcoin In 2023, Read On For The Explanation

Ukrainian President Volodymyr Zelensky, with his young supporters. (photo: twitter)

JAKARTA - Delegates from the government of President Volodymyr Zelensky have met with their counterparts in El Salvador before making plans to put cryptocurrency adoption at the top of the financial agenda of the Eastern European giant.

Zelensky, who is also known as an outspoken Bitcoin evangelist, has instructed ministers to turn Ukraine into a crypto-friendly country.

Last week, the 43-year-old politician was in California on a fact-finding mission as he visited Silicon Valley and explored opportunities where Ukraine could quickly navigate itself to positioning digital assets alongside its traditional currency.

The plan, says Professor Vyacheslav Evgenyev, is for Ukraine to legally tender Bitcoin by early 2023 and create a “dual currency state” where Bitcoin sits alongside the fiat hryvnia before it has the potential to become the dominant financial structure.

"Ukraine is naturally suited to such a plan," the Russian financier said. “Ukrainian people are not only ready for a financial revolution, they are used to and expecting it.”

The hryvnia, since 25 years ago has replaced the carbovanet in a secret financial overhaul that still doesn't sit well with Ukraine to this day.

“You need to look at the dynamics of Ukraine to understand how and why its government's plan to restructure towards a digital economy could actually be a real genius move,” says Prof Evgenyev.

"It has a young population looking to step out of the shadow of its noisy neighbour (Russia) and break free from the financial chains that have held it back for years," he added.

"Russia's overbearing influence in Ukraine concerns could prove to be the fuel needed for the engine of success," said Prof Evgenyev,

Bitcoin, he believes, may be the magic potion needed to wake a sleeping giant. "The prospects here are huge," the professor added.

“It has one of the most diverse energy mixes in the world, and has an enviable carbon offset that could attract thousands of miners,” he said.

"Add also a president who comes from the same workshop as Bukele, a young population, and a great desire for change and, well, you have a formula that can easily become very successful, very quickly," says Prof Evgenyev.

Indeed, El Salvador's forward-thinking President, Nayib Bukele, may have had a pressing influence on Zelensky's desire to implement his Bitcoin ambitions.

“They continue to discuss and share ideas, plans and thoughts about the future financial position of their country,” said Evgenyev.

At the same time that Zelensky was in America last week, a party of ministers from Ukraine's biggest financial brains was in El Salvador looking very deep into their financial structure to use as a starting point for a Ukraine blueprint.

“This project will take less than two years to complete, with or without the support of international financial authorities, and will make Bitcoin the dominant currency in Ukraine,” said Prof Evgenyev.

President Zelensky officially announced Ukraine's arrival on the crypto scene in San Francisco last week. He met with some of the leading investors and digital financial influencers in the region, and explained that the Ukrainian government is focused on establishing a digital state.

“Our meeting here in Silicon Valley is a great opportunity to discuss the prospects for the development of the IT sector and innovation in Ukraine,” said Zelensky.

“Our country is rapidly changing and adopting innovations. Over the past year, we have succeeded in making real breakthroughs in the digital field. At the same time, we still need to do a lot,” Zelensky said.

Meeting with delegates from the Stellar Development Network, Zelensky hinted that work was underway to build a legal framework that would pave the way for Bitcoin adoption.

“Ukraine is now the best magnet with blockchain and crypto specialists in Europe,” said Zelensky. “One of the vectors of the development of Ukraine's digital economy is the launch and development of an innovative legal market of virtual assets.”

Last week, El Salvador became the first country in the world to legalize Bitcoin. Every citizen who signs up for the program receives US$30 worth of Bitcoin preloaded into a government-approved e-wallet.