Economist Andrii Novak warns of potential risks for the banking sector of Ukraine in connection with the possibility of legalization of cryptocurrencies, which may happen as early as next year. Although legalization has its advantages, including transparency and investment inflows, the expert points to serious threats to traditional banks.
"When the legalization of cryptocurrencies will take place, there will be a significant outflow of capital from the banking sector to cryptocurrencies in the financial system," Novak said.
According to him, the outflow of money can occur for several reasons. One of them is the opportunity to receive a significantly higher income, in the case of a successful game on fluctuations in the value of cryptocurrency, than on deposits in banks.
"Secondly, for, let's say, a large part of Ukrainian society, especially those connected with politics, it is important to hide their capital and wealth. And the easiest way to do this is through cryptocurrency. And to explain my fortune by the fact that I once played crypto-currency very well and skillfully," Novak said.
Olena Sosyedka, the co-founder of the first fintech ecosystem in Ukraine, Concord Fintech Solutions, noted that the legalization of cryptocurrencies in Ukraine will also 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 transactions to be carried out within the framework of clear legal norms, without exposing oneself to regulatory risks.
In addition, according to Olena Sosyedka, the official recognition of the crypt will create favorable conditions for the inflow of international investments, which are extremely important for the development of the Ukrainian economy, and will also provide an impetus for the development of innovative financial technologies. In particular, it will promote the development of blockchain platforms, as well as 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 carry out operations using crypto assets, bypassing the complexities of banking procedures. This will increase the flexibility and speed of financial operations.
At the same time, Olena Sosedka added that in order to avoid illegal transactions, such as money laundering or terrorist financing, it is necessary to implement clear control mechanisms for 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.
