Ukraine is taking a bold step toward embracing Bitcoin at the national level. Lawmaker Yaroslav Zheleznyak, a member of the Ukrainian Parliament, is preparing a new bill that aims to establish a national cryptocurrency reserve totaling 40,000 BTC — an equivalent of over $2.7 billion USD at current prices.The bill, expected to be introduced later this month.
Strategic Move Amid War and Economic Crisis
Zheleznyak said the initiative is partly designed to strengthen Ukraine’s financial independence in the face of ongoing military conflict and economic uncertainty. The goal is to create a “Bitcoin-based strategic reserve” that could serve as a hedge against inflation, international financial restrictions, and currency devaluation.
“In today’s geopolitical environment, it is clear that Bitcoin is more than just a digital asset — it is a strategic instrument,” Zheleznyak stated during a televised briefing. “We are building a digital financial shield.”
Binance to Provide Technical Infrastructure
The legislation is being drafted in partnership with Binance, the world’s largest cryptocurrency exchange. Binance will reportedly assist with technical implementation, storage security, and global exchange access. Sources close to the matter say the BTC will be custodied in cold wallets under multi-signature arrangements involving both the government and international custodians to ensure transparency.
Funding Sources and Legal Hurdles
According to Zheleznyak, the BTC reserve would be funded through a combination of state treasury allocations, international crypto donations, and public fundraising campaigns.
However, the proposed reserve still faces several challenges, including:
- Gaining broad parliamentary approval
- Navigating IMF and EU transparency regulations
- Setting legal precedent for government-owned digital assets
Ukrainian regulators are expected to fast-track related updates to the country’s digital asset law passed in 2022.
Global Implications of a State-Backed Bitcoin Reserve
If passed, Ukraine would become the first country in Europe to publicly formalize a large-scale Bitcoin reserve. This move could influence other nations — especially those in high-conflict or sanction-prone regions — to explore crypto-based reserves.
“This is not just a financial move; it’s a sovereignty move,” said Olena Mykhailenko, a Kyiv-based fintech policy expert. “It signals to the world that Bitcoin can be a national asset, not just a speculative one.”