Ukraine Is Developing Digital National Currency

Digital National Currency

Ukraine moves forward to materialize its plan of developing a digital central bank. Ukraine’s Government has hired Stellar Development Foundation to build its central bank digital currency.

 Ukraine and Stellar Development had signed a Memorandum of Understanding for developing a digital currency bank. Ukraine’s Government announced on Monday that the Ministry of Digital Transformation and Stellar have agreed to build a digital assets depository. Both have also agreed to digitalize the national currency for Ukraine as well.

Since 2017, the central bank of Ukraine has been exploring the possibilities of adopting virtual currency medium as their national currency. For this purpose, Ukraine has come up with the idea of developing a central bank digital currency.

Ministry was trying to introduce a legal virtual ecosystem for usage of digital assets on a government level, said Mr.Bornyakov.

Deputy Minister, Alex Bornyakov, said Stellar network would be a great help in the development of Ukraine’s virtual asset industry. He further said that the Stellar network would also provide a platform to Ukraine’s virtual asset industry to be integrated in the international economic ecosystem.

Stellar is a non-profit organization that was founded in 2014 by Jed McCaleb, co-founder of Ripple.

Last month, a German bank, Bankhaus von der Heydt, also hired Stellar for developing a digital asset for Euro. German Federal Financial Supervisory Authority BaFIN has also allowed the distribution of bonds in exchange of digital assets via Stellar.

CEO of Stellar Foundation also admitted that their partnership with UkranianGovernment and other stakeholders would officially start in January. They will soon be working on digitizing the Ukrainian national currency.

Stellar Foundation’s Dixon said in an email that they were in correspondence with other global bodies for setting up a CBDC.  He also wrote that many of the institutions or bodies around the globe were not necessarily technology companies. However, their customers might be supporters of digital currencies, stated Dixon.

Jason Chlipala, COO of Stellar said that Stellar’s Consensus Mechanism gives the coin producers a unique set of features. He also said that such features have not been provided by any other blockchain network. Therefore, utilizing the services of Stellar would be beneficial for developing the national CBDC, concluded Chlipala.