Genesis of digital currency in the civil law of Ukraine

Abstract

Problem settings. With the inclusion of a “new” object of civil rights—the digital thing—into the Civil Code of Ukraine, determining the role and specific features of digital currencies becomes an urgent necessity for the academic community. Exploring the history of the emergence of digital currencies is particularly important, as it helps to understand the evolution of their legal status, trace the origins of current regulatory approaches, and formulate legal frameworks to ensure their effective implementation and use. This article covers various periods in the history of Ukrainian statehood, focusing on key stages of civil law regulation, within which legal objects of the time are examined—those that, by their function and nature, can be considered precursors of modern digital currencies.

Analysis of recent research and publications. Certain aspects of the legal nature of digital currencies and crypto-assets in Ukrainian civil law have been studied by scholars such as R.A. Maidanyk, T.I. Brovchenko, D.Ye. Bilous, V.L. Skrypnyk, N.S. Khatniuk, N.B. Pobiianska, K.H. Nekit, A.A. Tsyban, L.V. Soroka, Ye.O. Michurin, S.O. Slipchenko, among others. Their research has primarily focused on defining the legal nature of digital assets, their civil classification, and the issues surrounding virtual assets and digital things. However, the historical context of the formation of digital currency as an object of private law remains underexplored, leaving gaps in the understanding of its genesis.

The purpose of the article is to identify the historical prerequisites and stages of the formation of digital currency as an object of civil legal relations, to analyze the evolution of legal regulation of related objects in Ukrainian law from antiquity to the present, and to attempt to determine the place of digital currency within the structure of Ukraine’s civil legislation.

Article’s main body. The development of digital currency as an object of civil law in Ukraine is closely linked to the historical evolution of property relations and monetary systems. From the early forms of barter in Kyivan Rus to the appearance of metal-based currencies like the hryvnia, value was gradually abstracted from physical goods to standardized financial instruments. In the Cossack era, despite the absence of a national currency, economic exchange thrived through the use of foreign coins, illustrating the adaptive nature of property law under conditions of legal pluralism and decentralization.

The first legislative attempt to establish a sovereign monetary system occurred during the short-lived Ukrainian People’s Republic. However, political instability and lack of enforcement mechanisms hindered full implementation. Only after Ukraine’s independence in 1991 did the process of codifying modern civil law gain traction, culminating in the Civil Code of 2003. This act laid the groundwork for future inclusion of digital assets as civil law objects. Over time, legislative amendments recognized “digital things” and virtual assets as legally significant, thereby enabling the conceptual integration of cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs) into civil turnover.

While digital currency shares the functional roles of traditional money—medium of exchange, unit of account, store of value—it also introduces technological features such as intangibility, programmability, and cross-border usability. These characteristics challenge the classical understanding of “things” in civil law and demand legal adaptation. 

Ukraine’s legislative response has been gradual. The recognition of electronic money, followed by attempts to define virtual assets and establish taxation frameworks, indicates a growing legal acceptance of digital financial instruments. Despite ongoing gaps in regulation, the integration of digital currencies into Ukrainian law aligns with international efforts, including the EU’s MiCA framework. Thus, digital currency in Ukraine continues to evolve as both a legal and economic phenomenon, shaped by national history and global innovation.

Conclusions and prospects for the Development. The recognition of digital currency in Ukraine’s civil law is the result of a long historical evolution shaped by economic, legal, and technological changes. From early barter and commodity exchange in Kyivan Rus to the formation of a national currency system and, later, modern digital assets, each stage reflects society’s need for effective instruments of value. 

The attempts of the Ukrainian People’s Republic to introduce a national currency highlighted the risks of hasty monetary reforms without strong legal foundations. In contrast, modern Ukraine has gradually built a legal framework that now includes digital objects such as virtual assets and electronic money within the Civil Code. 

Although the legal status and regulation of cryptocurrencies and other digital assets remain under development, ongoing reforms demonstrate Ukraine’s commitment to legal modernization. The future introduction of a central bank digital currency (CBDC) may further enhance the transparency and efficiency of payment systems. 

In this context, the genesis of digital currency is not an isolated phenomenon but a logical extension of Ukraine’s historical and legal trajectory. A deeper understanding of past legal experiments allows for more balanced and forward-looking policymaking, ensuring the alignment of state interests, technological progress, and market needs.