Recently Kiev hosted major financial event of the year, Ukraine cashless summit 2016, which gathered representatives of economic and financial education thought leaders, businessmen, young scholars, and media.
As we know, digital-revolution is rapidly changing world. Contactless payments, mobile money, and innovative financial services break down traditional borders and stereotypes, opening new opportunities and prospects.
It facilitates crime, bribery, and tax evasion – and yet some governments are printing more cash than ever. Other countries, meanwhile, are ditching cash entirely. And if Star Trek is right, we won’t have money of any sort in the 24th century.
Cash really is still king in Ukraine and is some parts of the world, but a few countries such as Sweden, which aims to decide on whether to issue a digital currency called “ekrona” within two years, are a step ahead of the rest in toppling its throne. Given that the cost of handling cash is high, it is in the interest of governments, banks and businesses to push for the change towards cashless. In some countries, effective policies have made a difference, whereas in others, it is thanks to consumers being more open to using mobile or plastic payments.
The program of the event which was broadcasted online for more than 1000 people including Georgia, involved following panel discussions:
- Financial Literacy as a Global Trend
- Power of Financial Education in a Cashless Economy
- Cashless Economy Revolution
The National Bank of Ukraine hopes to cut cash from 14.3% in 2015 to 9.5% of GDP in 2020, NBU Governor Valeriya Gontareva said in a video address at the opening of the Summit.
“We set the introduction of cashless payments as a top priority task. We believe that this is one of the key strategic directions for developing the Ukrainian banking system. According to the NBU’s data, last year the public received 58% of income in the cashless form. However, only 18% of expenses were cashless. This is evidence that the majority of population get used to withdraw money from payment cards in cash at ATMs. Our ambitious goal is to cut cash from 14.3% of GDP in 2015 to 9.5% of GDP in 2020,” Gontareva said.
Georgia is a flagship market for contactless payments
Earlier this year visa announced that Georgia is one of the top six countries in the region where people use contactless payments, and the country eagerly accepts new technologies.
Thereby, Nino Masurashvili Deputy General Director of Georgia’s largest bank TBC bank, was honored to present and share TBC bank’s achievements at Cashless Summit. Masurashvili talked about what TBC bank is doing in terms of Digitization and innovation.
“I would like to speak about what we are doing new in terms of innovation, we are focusing on multi channeling, just imagine ordinary people, they are much more on Facebook then they are using internet or mobile bank, we started to think, why do we limit them with only internet or mobile bank? In coming months the bank will offer services via messenger as well,” Masurashvili stated.
“TBC bank has already built a digital strategy,” she added, “If you have no digital access you can not be quick”. In addition data management is significantly important as well, TBC has all usefull data, one of which is GEO localization that helps bank to control customer’s transactions, we know what where to offer,” she said.
Georgia using digital currency
Recently Co Investment Fund has implemented an investment in the first project of Bitfury Group and as a result of this, Bitcoin Technologies processing data center was opened in Gori. The Fund had 20 million USD loan for BitFury Group. Bitcoin Technologies are so rapidly growing industry that, this business started very successfully and BitFury Group paid the loan in a year and a half. (Source BusinessContract)
Ukraine Launching Electronic Currency based on Blockchain
National Bank of Ukraine is going to release electronic currency based on blockchain. This issue is added into the roadmap for Cashless Economy, a large-scale project on implementing cashless payments.
Plans of the National Bank of Ukraine were revealed by Konstantin Yarmolenko, an advisor to the head of the agency for E-government queries. Its main goal is a transition of the banking system to cashless payments, in particular, using the blockchain technology.
The goal of the Ukraine Cashless Summit was to bring together important individuals to discuss innovations in electronic payments and how financial literacy can serve to promote a cashless society.