The e-hryvnia project — the digital currency of the central bank of Ukraine — is causing a lot of conflicting feedback among crypto-enthusiasts. Although the concept of a digital national currency may seem like a step towards the latest technology, the crypto community sees in this project a number of limitations and risks that go against the principles of decentralization and financial freedom.
1. Centralization and control
The main difference between e-hryvnia and cryptocurrencies is its centralized structure. Cryptocurrencies, such as Bitcoin or Ethereum, are designed to decentralize finance, avoiding the control of a single party. E-hryvnia, on the other hand, is under the full control of the National Bank of Ukraine, which can limit the freedom of users to manage their funds. This means that the NBU will be able to monitor transactions, implement certain restrictions, and in some cases even freeze assets, which is contrary to the ideas of the cryptocurrency ecosystem.
2. Lack of anonymity
E-hryvnia, like most digital currencies of central banks, ensures transparency of all transactions for the regulator, which significantly reduces the level of privacy of users. The cryptocurrency blockchain was designed to give users a high level of privacy (though not absolute anonymity). With the introduction of the e-hryvnia, the NBU gets the opportunity to fully monitor the financial transactions of citizens, which can limit the privacy and independence of users from state structures.
3. Questionable benefits for the cryptocurrency ecosystem
E-hryvnia does not offer new opportunities for the cryptocurrency market. Unlike decentralized financial projects (DeFi), it does not support innovative solutions such as smart contracts or zk-Rollups technologies that provide anonymity and security. Thus, it is unlikely to interest crypto-enthusiasts who value innovation, flexibility and true decentralization.
4. Risk of intervention and limitations
E-hryvnia creates an opportunity for the state to introduce certain restrictions on payments or control citizens' spending, which contradicts the foundations of cryptocurrency ideology. For example, in the future, the government may introduce restrictions on spending in certain categories or for certain groups of the population, which means increasing the state's influence on the financial activities of citizens.
5. Lack of benefits for the global crypto community
E-hryvnia does not offer unique advantages for the international crypto community, which appreciates the globality of cryptocurrencies and the ability to work without borders and restrictions. Since the e-hryvnia will be used mainly in the domestic market, its global potential seems limited.
Visnovok
The e-hryvnia is certainly an important step in the development of the digital economy of Ukraine, but from the point of view of a crypto-enthusiast, it has a number of disadvantages. Its centralization, limited privacy, and potential for government control make it closer to a digital counterpart to fiat currency than to a true cryptocurrency. Crypto enthusiasts see in this project not so much an innovation as an attempt to establish control over digital assets, which contradicts the principles of decentralization and financial independence, which are the basis of the crypto movement.
