Economist names risks for banking sector from crypto legalization
Kyiv • UNN
An economist warns of risks to the banking sector from the legalization of cryptocurrencies in Ukraine. A fintech expert points to potential benefits for the economy, including transparency and investment inflows.
Ukraine may legalize cryptocurrencies as early as next year. This will lead to an outflow of capital from the banking sector. This opinion was expressed in an exclusive commentary to UNN by Andriy Novak, Chairman of the Committee of Economists of Ukraine.
"When cryptocurrencies are legalized, the financial system will see a significant outflow of capital from the banking sector to cryptocurrencies," Novak said.
According to him, the outflow of money can occur for several reasons. One of them is the opportunity to earn a much higher income if you successfully play on cryptocurrency fluctuations than on bank deposits.
"Secondly, for, say, a rich part of Ukrainian society, especially those involved in politics, it is important to hide their capital and wealth. And the easiest way to do this is through cryptocurrency. And to explain your wealth by saying that I used to be very good and skillful at cryptocurrency," Novak said.
Add
Olena Sosiedka, co-founder of Ukraine's first fintech ecosystem Concord Fintech Solutions, in a commentary to UNN, noted that legalization of cryptocurrencies in Ukraine will have its advantages for the Ukrainian economy. In particular, according to her, such a step will provide greater transparency for investors and users of cryptocurrencies, which will allow them to conduct transactions within the framework of clear legal norms without exposing themselves to regulatory risks.
In addition, according to Olena Sosiedka, the official recognition of crypto will create favorable conditions for the inflow of international investment, which is extremely important for the development of the Ukrainian economy, and will also give impetus to the development of innovative financial technologies. In particular, it will facilitate the development of blockchain platforms and allow the government to better control transactions and taxation in this sector.
According to the fintech expert, the role of cryptocurrencies in stimulating small and medium-sized businesses is additionally important, as many companies will be able to conduct transactions using crypto assets, bypassing the complexities of banking procedures. This will increase the flexibility and speed of financial transactions.
At the same time, Olena Sosiedka added that in order to avoid illegal transactions, such as money laundering or terrorist financing, it is necessary to introduce clear mechanisms for controlling cryptocurrency markets.
"The legalization of cryptocurrencies in Ukraine is an extremely important step that opens a new era in the development of the country's financial system," the fintech expert summarized.
Recall
UNN has published a series of articles about digital currencies and their possibilities. Our first material was devoted to the technology underlying cryptocurrencies - the blockchain: "Crypto for Dummies". Part 1: What is blockchain and its "features" that few people know about.
The second article is about bitcoin halving: "Crypto for Dummies". Part 2: What is halving and why is it causing a stir in the cryptocurrency market.
Third material: Crypto for Dummies. Part 3: step-by-step instructions on how to buy a crypto coin.
The fourth material: Crypto for Dummies. Part 4: What are coins and tokens and what are their differences.
Fifth material: "Crypto for Dummies". Part 5. Cold and hot wallets
Sixth material: Crypto for Dummies. Part 6. Security when using cryptocurrency exchanges and exchangers
