The National Bank of Ukraine is conducting a study on the possibilities of using retail central bank digital currencies (CBDCs) for cross-border transactions. This initiative is part of the E-Hryvnia project. Retail and wholesale CBDCs are gaining attention in the financial world, and their impact could be significant.

Wholesale settlements are payments between financial institutions that typically involve large amounts, such as securities or foreign exchange transactions, as well as interbank settlements.

The National Bank of Ukraine is considering the possibility of using retail CBDCs for cross-border transactions, as this form of central bank digital currency may be useful for Ukrainian citizens in the future. This is becoming one of the areas of research in the E-Hryvnia project.

The E-Hryvnia project aims to determine the need for Ukraine to introduce its own retail CBDC, the e-hryvnia. In this context, the National Bank of Ukraine is analyzing the projects of other central banks, including retail CBDCs, to take into account international experience in technology, design, and architecture.

According to the Atlantic Council, 130 countries are currently considering the creation of central bank digital currencies, accounting for about 98% of global GDP.

In some countries, the main focus is on the study of wholesale CBDCs. For example, in the United States, the development of retail CBDCs for customers has slowed down, but the topic of wholesale (interbank) CBDCs is being actively promoted. After Russia's invasion of Ukraine and the tightening of sanctions by the G7, the development of wholesale CBDCs has gained importance.

The Atlantic Council documents the development of CBDCs around the world and points to the existence of 16 cross-border wholesale CBDC projects implemented by central banks in various countries, including China, Malaysia, Australia, Israel, Europe, and others.

The introduction of wholesale CBDCs can greatly facilitate international payments and fund transfers. It could become an alternative channel for financial transactions and have prospects for development.

Exploring the possibilities of using retail CBDCs by Ukrainian citizens is an important step towards the digital economy and expanding the nation's financial capabilities.