On August 24, 2021, on Independence Day, Ukraine will enter paperless mode, said President Volodymyr Zelensky. According to the presidential press service, he said this during a speech at the Diia Summit Spring 2021 within the framework of the All-Ukrainian Forum “Ukraine 30. Digitalization” on May 17.
“As promised, no papers for government agencies. No state body will be able to demand papers or certificates from Ukrainian citizens for the provision of public services. And we will do everything to make the “state without paper” exist not just on paper” the president said.
According to Zelensky, Ukraine has already carried out a digital revolution.
“Earlier, to get a number of permits, you had to pay bribes. Now you only have to pay for Internet. It used to be ten offices. Now – one site. Previously – 50 certificates in queues. Now – three or four clicks on the smartphone. Earlier – weeks and months. Now it is 10 or 20 minutes to open a sole proprietorship and a limited liability company online”.
Non-cash payments on the rise, supporting the decline of the shadow economy
Last year was marked by a rapid growth of the non-cash payments market in Ukraine. According to the National Bank, eight out of ten payment transactions in 2020 were non-cash. At the same time, the number of institutions accepting payment cards increased by a third and the number of contactless terminals increased by 11.2%. Under the conditions of quarantine restrictions, non-cash instruments have shown their advantage over traditional payment methods, so it is expected that the cashless trend will continue to develop in Ukraine.
It is worth noting that a significant amount of transactions in the shadow economy are carried out through cash. According to the calculations of the Ministry of Economy, the level of the shadow economy in Ukraine in 2019 was 28% of GDP. According to the state strategy for the development of the financial sector until 2025, it is planned to reduce it to 20%. According to business representatives, stimulating non-cash forms of payment will achieve the desired level of de-shadowing of the economy, as well as significantly reduce the risks of dubious cash transactions.
For more information, see: https://eba.com.ua/na-platformi-eba-obgovoryly-pytannya-rozvytku-cashless-v-ukrayini/