Ukraine Central Bank Suspends Use of Electronic Money Following Russian Invasion

Ukraine's central bank banned the issuance of electronic money and the replenishment of electronic wallets following the invasion by Russia.

• The National Bank of Ukraine announced a range of resolutions on Thursday in connection with martial law now throughout the country.
• Among them, the bank ordered "to suspend e-money issuers, replenish e-wallets with e-money, and distribute e-money to e-money issuing banks."
• In this context, e-money most likely refers to fiat currency in digital form, such as that held in a PayPal account or a cash app digital bank.
• It is unclear whether this extends to crypto or other digital currencies. Last year, the central bank was granted permission to issue a central bank digital currency (CBDC).
• The orders also suspend the foreign exchange market, limit withdrawals from consumers' bank accounts and forbid the withdrawal of foreign currency from customer accounts.

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