Ukraine Explores Strategic Bitcoin Reserve, A First for Europe

Decentralised finance is often touted as an efficient means of transaction during war times. Ukraine, grappling to sustain its economy amid a long war with Russia, is now exploring a Strategic Bitcoin Reserve. In doing so, it could soon become the first European country to launch a Bitcoin Reserve if the bill is passed.

Ukraine has largely maintained a positive stance towards cryptocurrencies, and the country is in the middle of sweeping digital asset reforms. Binance has also offered help after an MP revealed plans to submit the bill.

Ukraine Eyes Strategic Bitcoin Reserve With Binance Support

Ukrainian MP Yaroslav Zhelezniak has confirmed plans to submit a bill before parliament for a Strategic Bitcoin Reserve. According to the local media reports, Zhelezniak will present the bill in the coming weeks on the floor of the House.

Per the report, the last hurdle for Zhelezniak is refining the text of the bill before its presentation. Zhelezniak doubles as the Deputy Chairman of the Committee on Finance, Tax and Customs Policy.

Back in February, the MP hinted at a draft law for a national cryptocurrency reserve, but now Zhelezniak is narrowing his focus to Bitcoin. His comments follow an incoming meeting between Conor McGregor and El Salvador’s president for an Irish Strategic Bitcoin Reserve.

“We will soon submit a draft law from the industry allowing the creation of crypto reserves,” said Zhelezniak in February.

Binance Declares Support For The Incoming Bill

Zhelezniak’s incoming bill has garnered the attention of Binance, with the international exchange reportedly angling to support the move. Head of Binance in CEE, Central Asia, and Africa, Kirill Khomakov, revealed that Binance will support the Strategic Bitcoin Reserve.

However, the Binance executive warns that the process for a reserve will be an uphill climb for Ukraine. Ukraine is in the process of creating robust legislation for its cryptocurrency industry, but a slow legislative process threatens to derail efforts. Khomyakov quipped:

“The creation of such a reserve will require significant changes in legislation, which indicates that this process will not be quick”

Binance has been racking up a series of partnerships with governments across the globe to promote cryptocurrency adoption. Binance founder Changpeng Zhao previously urged Kyrgyzstan to add BTC to its national reserve after inking a multi-year partnership.

Ahead of the submission of the Strategic Bitcoin Reserve, Ukraine is pursuing a ceasefire with Russia. A Coingape report notes that the signing of a peace deal between Ukraine and Russia may stoke bullish sentiments in the cryptocurrency markets.