Ukrainian Bitcoin Bank taken over by government

The Ukrainian government recently announced to take over the domestic private bank. The bank is one of the largest banks in the country, which allows Bitcoin-friendly banking. On Sunday, the government issued a statement stating the state’s takeover of the bank to avert a possible financial crisis caused by the bank’s mis-management. The statement states: “The government is now 100% owner of PrivatBank and guarantees the uninterrupted function of this institution and the security of the money of its customers.”

The decision of the government follows harmful steps of PrivatBank. It is said to have issued bad debts, which should have been depreciated. After the reports have been made public, corporate bonds have fallen more than 50%, as a news agency reports.

Ukraine has a productive Bitcoin community. A large number of the population uses the digital currency already for online shopping and other things. PrivatBank was the first bank in the country to offer Bitcoin payments as a means of payment for online merchants. Last year, the bank opened online payment access for its customers. There you could then select bitcoin payments and send a Hryvnia equivalent in Bitcoin. To do this, you simply had to scan the QR code on the dealer’s side. The dealer then received the payment either in Hryvnia or Euro, depending on the preference.

It remains unclear whether the nationalization of PrivatBank affects the crypto-friendly policy of the institution. From now on, the government will intervene in the bank’s major decisions. The final decision of nationalization fell after the bank’s shady lending operations were published by several media. The management of PrivatBank gave its control voluntarily to the government, in the best interest of the customers.

The now privatized PrivatBank would be the perfect springboard for the Ukrainian government to push the adoption of the digital currency in the country. The likelihood that the government is doing the opposite is also high. No matter which route is chosen, the decisions made by PrivatBank under the new management will make a noticeable difference in the Bitcoin ecosystem of the country.

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