Ukraine’s Ministry of Digital Transformation announced that they have chosen the Stellar Development Foundation (SDF) for its plans for central bank digital currency (CBDC) after Ukraine’s draft cryptocurrency regulation bill passed its first parliamentary hearing last December 2020.
Both Stellar and the Ministry of Digital Transformation have signed the ‘Memorandum of Understanding’ in relation to the country’s plans on cryptocurrency adoption. Since 2017, Ukraine’s national bank has been studying the possibility of CBDC in the country.
‘Another important aspect of this cooperation is contributing to the development of the infrastructure for a Ukrainian national digital currency. Most of the world’s leading countries are developing their own national digital currencies,’ Digital Transformation and IT Deputy Minister of Ukraine Oleksandr Bornyakov shared about the new project.
‘It demonstrates Ukraine’s movement towards one of the major financial trends. At the Ministry, we aspire to ensure our country’s adaptation to technological innovations and competitiveness in the financial market in Eastern Europe.’
Ukraine’s national bank disclosed the plans to use the Stellar blockchain’s private version in conjunction with their project in 2019, the E-hryvnia Pilot Project.
According to SDF CEO Denelle Dixon, the project between Ukraine’s government and other stakeholders will be launched this January 2021.
‘We look forward to working with the Ministry and other stakeholders to digitize hryvnia, to bring Stellar-based tools and services to the people and businesses of Ukraine, and to introduce new partnership opportunities in Ukraine to businesses in the Stellar ecosystem,’ said Dixon.
She also stated in an email that they’ve been in contact with different governments and institutions around the globe regarding factors they need to consider when implementing CBDCs.
As per COO Jason Chlipala, the consensus mechanism of Stellar provides assurances to its users that other public blockchains lack.
‘SCP would well serve a central bank, reflecting the trusted relationships it would hold and ultimately award it a significant vote in the consensus protocol,’ said Chlipala.
Back in December 2020, the parliamentary hearing didn’t go as what the crypto supporters expected because some lawmakers have criticized digital assets. However, by the end of the hearing, the bill has a total of 229 ‘yes’ votes out of 340.
Max Krupyshev, CEO of Cryptoprocessing.com and one of the first crypto enthusiasts in the country, stated that the regulation will target the domestic market. With this, Ukraine is now ready to adopt cryptocurrency for its people to use.
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