Ukraine wants to cancel "cash"and the EU plans to introduce a digital euro into circulation

They want to leave only non-cash payments and cancel “cash” in Ukraine. True, so far there is only an active discussion – both in society and in financial circles – of a resonant statement.

It was voiced by Rostislav Shurma, Deputy Head of the President’s Office, at an international conference on the restoration of Ukraine in London a week ago. The official claims that such a step will help defeat corruption in Ukraine, quotes “A country”:

We believe that this will be a very effective tool to eliminate 95-99% of corruption cases in the country if there is no cash. We discuss. I can’t tell you that we will do it. We are discussing this. In the coming months, we will present a roadmap, whether we will do it or not. I believe that the decision will be in favour.

However, his speech did not cause a special reaction of the participants of the event. Although Ukraine may become the first country in the world to ban cash payments and implement what Western financiers call cashless.

Meanwhile, the European Commission made a proposal to develop a legislative framework for the introduction of a digital euro, which would circulate in parallel with cash euros. The digital euro will complement banknotes and coins by becoming an additional payment option and enabling digital payments in the eurozone with widely accepted, cheap, secure and durable public money, according to an EC press release.

In the event that the proposal is approved by the European Parliament and the Council EU, the legal framework for the introduction of the digital euro will be created. However, the final decision on this issue lies with the European Central Bank.

It is envisaged that the digital euro, like cash, will be available in parallel with existing national and international private payment instruments such as payment cards or apps. It will act like a digital wallet, allowing people and businesses to pay with digital euros anytime, anywhere in the Eurozone.

The digital euro must be available for online and offline payments, writes BB.LV. That is, payments could be made from device to device even without a network connection. And the personal data of users would still be reliably protected, since when making a payment, less personal data would have to be disclosed than now, in the case of payments by bank cards.

Basic services related to the use of the digital euro are proposed to be provided to individuals free of charge. People without a bank account could open an account at a post office or other institution. The digital euro would also be easy to use by people with disabilities.

It is assumed that merchants throughout the eurozone will be required to accept the digital euro, with the exception of very small merchants, for which the costs of creating a new payment infrastructure would be disproportionately large.

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