Ukraine’s Ambitious Move Toward a Strategic Bitcoin Reserve
Following the United States’ initiative to establish a strategic reserve, Ukraine is now in the process of launching its own public Bitcoin reserve. Yaroslav Zhelezniak, a parliament member and former advisor to ex-Prime Minister Volodymyr Groysman, has introduced a legislative proposal to the Verkhovna Rada (the Ukrainian Parliament) that aims to include cryptocurrency in the nation’s asset reserves, which presently comprise gold and foreign currencies.
This legislative move is directed at the National Bank of Ukraine (NBU), allowing flexibility without mandatory requirements. The NBU will retain the authority to make independent decisions regarding the acquisition and management of digital assets, with complete discretion over the timing, methods, and quantity of Bitcoin purchases. This strategy is ambitious and could potentially pave the way for billions of dollars in value.
Details of the Strategic Bitcoin Reserve Initiative
The inspiration behind this initiative draws from a model set by former U.S. President Donald Trump, who ordered the creation of two national cryptocurrency reserves: one for Bitcoin and another comprising other cryptocurrencies like XRP, Solana, and Cardano. However, the U.S. isn’t alone in exploring this direction. Countries such as China have utilized seized Bitcoin from PlusToken to amass nearly $20 billion. Nations like Switzerland, Brazil, Venezuela, Pakistan, Kyrgyzstan, and some EU countries, including Finland and the Czech Republic, are also working toward incorporating digital assets into their national reserves.
The draft law, numbered 13356 and presented on June 10, 2025, is currently under review by the Finance Committee before being submitted to the Parliament. The Verkhovna Rada’s role will be essential in promoting effective public policies and establishing a clear, stable, and adaptable regulatory framework. Zhelezniak has expressed his belief that this move will position Ukraine within the global financial innovation landscape, stating that prudent management of cryptocurrency reserves will strengthen macroeconomic stability and foster opportunities in the digital economy.
The Development of Ukraine’s Digital Economy
Ukraine has long enjoyed a favorable relationship with the blockchain sector, fintech, and leading cryptocurrencies. According to data from BitcoinTreasuries.net, Ukraine ranks fourth among global governments for Bitcoin holdings. As of June 13, the NBU holds 46,351 BTC, surpassing central banks in North Korea, Bhutan, and El Salvador, which were early adopters of cryptocurrencies for state revenue support.
The strategy of President Volodymyr Zelensky and Prime Minister Denys Shmyhal involves leveraging Bitcoin for the nation’s future, aiming to diversify reserves and digitize the economy. While the draft legislation does not clarify the funding sources for purchasing cryptocurrencies for national reserves, options could include public debt issuance, tax revenues, western aid packages, loans, or alternative methods. In the cases of the U.S. and China, Bitcoin reserves were capitalized using government-owned assets seized during legal actions to avoid additional taxpayer costs.
However, establishing a national Bitcoin reserve comes with significant challenges, such as the volatile price of cryptocurrencies, associated management costs, and the need to sell tokens without adversely affecting market prices. Nevertheless, Ukraine is committed to accelerating the integration of digital assets into its economy. The Parliament has already enacted regulations governing cryptocurrencies and legalized Bitcoin, ensuring consumer protection through licensing and taxation requirements for crypto service providers operating within the country.
