Digital hryvnia in the context of international experience in designing Central Bank Digital Currencies: innovations, stability, and monetary sovereignty

Анотація

The article tries to rethink the conceptual nature of central bank digital currencies (CBDCs). We look at the international experience of their design and their impact on financial stability, innovations, and monetary sovereignty. We also consider the specifics of implementing the digital hryvnia in Ukraine. This means we move the focus of our research from the technology platform to the institutional consequences. The aim of the article is to summarize the international experience of designing central bank digital currencies (CBDC) and to explain the institutional approach to understanding them. We also define the conditions for combining innovations, financial stability, and monetary sovereignty for the future implementation of the digital hryvnia in Ukraine. The research results show that within the institutional approach, it is better to view CBDC as a systemic disruptive innovation. It transforms the financial market architecture. It involves a transition from indirect access to money through banks to the direct access of economic agents to central bank liabilities. We developed the institutional approach to define the nature of CBDC. Unlike technology-oriented views, it moves the research focus from the technology platform to institutional effects, such as changes in money ownership and the risks of bank disintermediation. We explain offline functionality as an element to ensure monetary sovereignty and continuous money circulation during infrastructure crises. It is proven that technical limits, like caps and interest rates in CBDC design, work as tools to ensure systemic stability and manage the disruptive potential of the innovation. It is proven that CBDC design requires combining innovations, financial stability, and monetary sovereignty. This is done through trade-offs between efficiency, inclusion, stability, and privacy. We define that the international dimension of CBDC is connected both to risks for monetary sovereignty and to the potential to make it stronger by implementing our own digital currency and through international cooperation. It is proven that in the national context, the digital hryvnia becomes a complex innovation based on disruptive technology. It combines economic efficiency with national resilience, especially through offline functionality and programmability. Its implementation creates a base for new approaches to transparent resource use, better administrative efficiency, and integration with the European digital payment space.

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