In the conditions of the war, which requires colossal costs and endangers the stability of the budget, Ukrainians are forced to watch how their money is spent on initiatives that seem extremely irrelevant. While the expenses of the state budget are calculated in the trillions, and the deficit grows every day, the country continues to implement solutions that look like a mockery of real needs: renaming streets, increasing salaries and pensions for officials and judges, creating new redundant commissions and structures. And here is another initiative – the National Bank of Ukraine decided to change the names of exchange coins from “penny” to “step”. Against the background of such a crisis, does it not look like a demonstration of detachment from reality and disrespect for the country’s resources?
Reasons for changing the name of the coin from “penny” to “step”
For restoration of historical justice, promotion of de-Russification and revival of national traditions in monetary circulation of Ukraine National Bank of Ukraine initiates the change of the name of changeable coins from “kopey” to “step”.
The head of the National Bank of Ukraine, Andrii Pyshnyi, argues that this change is an important step in restoring historical justice, promoting de-Russification, and reviving national traditions in Ukrainian money circulation. According to him, the “penny” is a symbol of the Moscow occupation, and today the Ukrainian people have the opportunity to take back what was unfairly taken. He believes that the name “step” has deep roots in Ukrainian history and is part of the national tradition that was lost during the period of Russian influence.
The name “step” has an ancient Ukrainian origin and was already used in the monetary system of Ukraine since the 16th century. She was actively mentioned in Ukrainian classical literature, in particular in the works of Taras Shevchenko, Lesya Ukrainka and other outstanding writers. During the Ukrainian revolution of 1917–1921, “steps” were introduced into real money circulation, which confirms the historical validity of this name.
The NBU emphasizes:
“The name “kopey” has a Moscow, imperial origin. In the conditions of large-scale Russian aggression, the replacement of kopecks with shags is an important and necessary step, because today kopecks remain in circulation only in states hostile to Ukraine.
Decommunization, de-Russification, and decolonization of Ukraine are processes that began with the collapse of the USSR and peaked at the beginning of Russia’s war against Ukraine in 2014 and are actively ongoing today. Uncompromising cleansing from centuries-old layers of Russification is the duty of every state institution.”
In addition, the National Bank of Ukraine claims that modern sociological studies show the growing interest of Ukrainians in their history and culture. The vast majority of citizens are proud of national symbols, and money is an important element of statehood that every Ukrainian holds in his hands every day. Therefore, the restoration of the name of coins, which has deep roots in Ukrainian culture, is particularly relevant and symbolic.
It should be noted that the possibility of renaming Ukrainian coins from “kopeck” to “step” was studied by historians of the National Bank, who work in the Museum of Money of the NBU.
“We studied in detail the origin of the names of coins and coin-counting denominations, the peculiarities of monetary figures, the traditions of wealth accumulation in Ukraine. The evidence we received gives us reason to boldly assert that the purely Ukrainian name for small coins is “shag”. Therefore, its return to modern monetary circulation – logical and scientifically based. Our hryvnia is of the princely family, and the shag comes from the glorious Cossack family.” – emphasized Andriy Boyko-Gagarin, senior custodian of the funds of the NBU Money Museum, doctor of historical sciences.
The deputy director for scientific work of the Institute of Linguistics of the National Academy of Sciences of Ukraine, candidate of philological sciences Oleksandr Skopnenko, emphasizes that the name “step” is a deeply Ukrainian lexical unit. the return of this name to modern exchangeable coins will not only restore national traditions in monetary denomination, but will also forever sever the connection between the Ukrainian monetary system and the colonial Russian linguistic culture.
Vladyslav Bezpalko, a senior researcher at the National History Museum of Ukraine, believes that since the middle of the 17th century in Cossack Ukraine, the word “step” was widely used in record keeping. This short and convenient word was noted for its economy in linguistic usage, which contributed to its popularity as the primary term for small coins. The study of Taras Shevchenko’s work showed 11 cases of using the words “step” and “step” in the sense of an ancient coin. This proves that the term “step” was part of the lexical composition of the Ukrainian language in the second half of the 19th century and confirms the existence of this monetary unit in the economic relations of that time.
The war and the budget of Ukraine
Against the background of the ongoing military conflict, which requires huge costs, the Ukrainian state budget came under considerable pressure. State budget expenditures for 2024 amounted to a whopping 3.11 trillion UAH, while revenues amounted to only 1.56 trillion UAH. This creates a deficit of UAH 1.6 trillion, which presents the government with an extremely difficult choice: where to direct limited resources to meet critical needs and support society.
The security of the country remains the number one priority. Defense spending, including the purchase of modern weapons, military training and provision of military units, is critical to protecting Ukraine’s territorial integrity. In addition, the war caused enormous damage to the Ukrainian infrastructure. Roads, bridges, railways, water and electricity systems – all these elements are critically important for the normal functioning of the country and need urgent repair and restoration. Damaged transportation routes impede the movement of goods and people, which in turn slows economic recovery and increases logistics costs.
Millions of Ukrainians were forced to leave their homes due to hostilities. Restoration of destroyed housing is an extremely important task. Problems with the availability of housing for internally displaced persons, as well as the reconstruction of destroyed apartment buildings and private houses, require significant financial investments.
The country’s medical system is also under incredible strain. Funds are needed to provide medical institutions with modern equipment, medicines and medical personnel. It is important not only to treat the wounded, but also to ensure uninterrupted access to medical services for civilians. Treatment and rehabilitation of war victims are critical for restoring their health. Treatment and rehabilitation of veterans is also an important aspect that cannot be ignored. Our heroes returning from the front need not only medical assistance, but also psychological support and adaptation to a peaceful life. Rehabilitation costs, including psychotherapy, physical rehabilitation and social integration, are substantial but critical to ensuring their dignity and quality of life.
One of the main components of social development is the educational system. War should not jeopardize the quality of education. Salaries for teachers and other educational workers must be adequate to ensure their motivation and stability. Without the proper support of teachers, the education system may be at risk.
It is extremely important to ensure timely social payments, including pensions, assistance to large families, and social support for the poor and disabled. These payments are critical to ensuring social stability and support for the most vulnerable.
War also has a negative impact on the environment. Spending on environmental projects, including the restoration of damaged natural areas and the fight against pollution, is important for preserving natural resources and maintaining the health of citizens.
The economic stability of the country also depends on the support of small and medium-sized businesses. Financial aid and tax incentives for these businesses can help restore the economy, create new jobs and ensure economic growth.
Expenditure of the state budget on a new initiative
The renaming of “penny” to “step” in the national currency is a significant financial burden for the state budget. Changing the name of the currency may look like a symbolic gesture, but behind it there is a whole range of financial and administrative costs that have an extremely unpleasant impact on the country’s budget.
The first and most obvious cost aspect is the production of new coins. The process of making new coins requires significant resources: from purchasing metals to setting up equipment. Imagine that every coin has to be recycled and new coins have to be made, which requires additional production costs. In addition, it will also be necessary to spend money on the development of a new design, which is also not a cheap process.
To avoid confusion and problems with accounting, it will be necessary to remove old pennies from circulation. This includes the costs of organizing the process of collecting and disposing of old coins. The organization of such a process will require funds for transportation, processing and destruction of old coins. This stage also requires the involvement of specialized companies and additional administrative costs.
Changing the name of the coins also requires significant costs to update all documents, legal acts, computer systems and software that interact with the money circulation. Banks, accounting offices and all government institutions working with monetary transactions must adapt their systems to the new standards. This requires not only the costs of technical updates, but also the retraining of personnel.
Changing the name of coins can also affect the business environment and ordinary citizens. Businesses may face additional costs associated with updating cash registers, accounting systems and price tags. It can also cause temporary confusion and increase customer service costs. For ordinary citizens, this means the need to adapt to new conditions, which also has certain costs and can create additional difficulties. Finally, it is necessary to take into account the long-term costs associated with the adaptation to the new currency. This includes costs for information campaigns to explain the changes to citizens, as well as costs for support and maintenance of new systems in the future.
Undoubtedly, the restoration of historical justice and the revival of national traditions are important tasks for any country, especially in times of war. Ukraine, like any nation, has the right and duty to preserve and popularize its cultural heritage, historical values and national symbols. Restoring historical justice helps strengthen national identity and unite society around common values.
However, in the context of the war and the huge deficit of the state budget, it is important to approach these issues with special caution and intelligence. State decisions should be not only patriotic, but also economically justified, they should be based on real data and priorities, and not only on symbolic gestures. Neglecting these issues can lead to further deterioration of the economic situation, social tension and loss of public support.
Oksana Ishchenko
