Ukraine IP-FSS Project | Cashless Economy: Legal-Regulatory Ecosystem Assessment

The National Bank of Ukraine (NBU) is leading the Government of Ukraine (GoU) initiative to move towards a Cashless Economy. Recently, a new Head of the NBU Payment Systems and Innovative Development Department was appointed, bringing a strong understanding of the path towards cashless and a commitment to achieve it. The National Parliament (Verkhovna Rada) also has legislative leaders who understand technology and Digital Financial Services (DFS) and are committed to accelerating Ukraine's progress towards cashless. Both the NBU and the Parliamentary Committees have adopted postures of greater openness and transparency, with the NBU Regulatory department organizing a half-day workshop on the Cashless Economy, attended by 60 active members of the DFS ecosystem. Digital Financial Services are provided at the intersection of two distinct industry sectors: financial services, regulated by the NBU, and information & communications technology (ICT), regulated by the National Commission for the State Regulation of Communications and Informatization (NCSRCI). A protocol was signed, confirming NCSRCI's lack of statutory authority over DFS, giving NBU unambiguous jurisdiction over all financial services. NCSRCI has a potentially important role to play in promoting rapid expansion of wireless connectivity, primarily through mobile phones with 3G or better bandwidth. A wide range of sector associations, including the Association of Ukrainian Banks, Independent Association of the Banks in Ukraine, Ukrainian Interbank Payment System Members Association, Ukrainian Union of Members of Payment Market, and Association of Mobile Network Operators, have professional staff dedicated to monitoring legislative and regulatory activities, consumer education, and protection. These associations play a crucial role in shaping the legal-regulatory enabling environment for DFS. The NBU and NCSRCI have distinct roles in regulating DFS. The NBU regulates financial services, while NCSRCI regulates ICT. However, NCSRCI's role is limited to promoting wireless connectivity, primarily through mobile phones with 3G or better bandwidth. Sector associations, such as the Association of Ukrainian Banks and Association of Mobile Network Operators, also play a crucial role in shaping the legal-regulatory environment for DFS. The National Parliament (Verkhovna Rada) has been actively drafting and considering wide-ranging overhaul of payments legislation since the new regime in 2014. Several Committees are involved in this process, with a focus on creating an enabling environment for DFS. The NBU and NCSRCI have been working together to promote the development of DFS in Ukraine, with a focus on creating a cashless economy. The NBU has taken steps to promote the development of DFS in Ukraine, including organizing a half-day workshop on the Cashless Economy. The NBU has also appointed a new Head of the Payment Systems and Innovative Development Department, who has a strong understanding of the path towards cashless and a commitment to achieve it. The NBU and NCSRCI have also been working together to promote the development of DFS in Ukraine, with a focus on creating a cashless economy. The sector associations, including the Association of Ukrainian Banks and Association of Mobile Network Operators, have been actively involved in shaping the legal-regulatory environment for DFS in Ukraine. These associations have professional staff dedicated to monitoring legislative and regulatory activities, consumer education, and protection. They play a crucial role in promoting the development of DFS in Ukraine and creating a cashless economy.