The government of Ukraine is now also planning to introduce its own Central Bank Digital Currency (CBDC) and has moved a step forward by selecting a blockchain network where it will develop its national digital currency. The Ukrainian government has selected the prominent blockchain network Stellar as a platform for creating its CBDC.
The Partnership With Stellar Is Basis of The CBDC’s Development
Reportedly, the Stellar Development Foundation (SDF) and Ukraine’s Ministry of Digital Transformation have entered into a partnership by signing a “Memorandum of Understanding as revealed in an announcement made on the 4th of January. As part of this partnership agreement, both of them will be collaborating with each other on the project that is to develop Ukraine’s national digital currency and an ecosystem for virtual assets.
Oleksandr Bornyakov, the country’s Digital Transformation and IT Deputy Minister, said in a statement that they have been exploring the possibility of developing a central bank digital currency for the past three years, and now they have stepped forward to initiate the development of their digital currency. Bornyakov said that their partnership with the Stellar Foundation is the first step of the development of their central bank’s digital currency.
Revealing the country’s plans for the implementation of a CBDC, Bornyakov stated that the country’s Digital Transformation Ministry is currently busy establishing a legal framework and environment for the creation of crypto assets in the country.
While talking about their partnership with the Stellar Development Foundation, Bornyakov said that their collaboration with the SDF would be helpful for them as they are intended to build the industry of virtual assets in the country.
The Chief Executive Officer (CEO) of the Stellar Development Foundation, Denelle Dixon, also commented on this partnership and said that they are already in talks with financial institutions and governments from across the entire globe regarding crucial considerations over the issuance of central bank digital currencies. Dixon furthermore claimed that their support is expanded to a lot of audiences.
Ukraine is the latest country that is going to step into the developmental phase of its central bank digital currency. Prior to it, various other central banks from across the whole world have gone very far in the development of their respective central bank digital currencies. The People’s Republic of China (PBoC) has already completed the development of its CBDC, known as Digital Yuan, and is currently in the testing phase of its project.