Ukraine’s CBDC, the Digital Hryvina, Will Run on Stellar’s Blockchain
Besides working on a central bank digital currency, Stellar Development Foundation (SDF) will also help with the development of digital assets and regulation of stablecoins in the country.
The Ministry of Digital Transformation of Ukraine signed a Memorandum of Understanding and Cooperation with Stellar Development Foundation (SDF) on Dec. 28.
SDF announced on Monday, this week, that as per the memorandum they will work on the development of virtual assets in Ukraine.
In response, XLM recorded gains, going to nearly $0.17 XLM -2.11% Stellar / USD XLMUSD $ 0.29
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The latest efforts align with the country working on creating a legal environment for the development of digital assets in Ukraine and enhancing its status as an innovative digital country in the financial market in Eastern Europe.
“Another important aspect of this cooperation is contributing to the development of the infrastructure for a Ukrainian national digital currency,” said Oleksandr Bornyakov, Deputy Minister of Digital Transformation for IT Development.
The National Bank of Ukraine has been researching the possibility of CBDC implementation since 2017, Bornyakov said.
As per the memorandum, both will cooperate on the development of the virtual assets market in Ukraine, supporting projects related to virtual assets; implementation and regulation of stablecoin circulation in the country; and development of the digital currency of the Central Bank (CBDC) in Ukraine.
Denelle Dixon CEO: Stellar Development Foundation
“We look forward to working with the Ministry and other stakeholders to digitize the 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.”