The Ukrainian government will use the Stellar blockchain to develop its central bank digital currency (CBDC)
The Ukrainian government has selected the Stellar blockchain to develop its central bank digital currency. The Ministry of Digital Transformation of Ukraine announced yesterday that it will work with the Stellar Development Foundation (SDF) to build a virtual assets ecosystem and a national digital currency for Ukraine.
The Stellar Development Foundation and the Ministry of Digital Transformation signed a memorandum of understanding to support these goals. The agreement outlines Ukraine’s strategy for implementing CBDCs and developing digital assets. It includes measures to support projects focused on digital assets, to implement and regulate stablecoin circulation, and to promote CBDC development.
Deputy Minister for Digital Transformation and IT, Oleksandr Bornyakov, said the National Bank of Ukraine has been studying the potential for CBDCs since 2017. Their partnership with Stellar will help Ukraine advance its virtual currency plans.
The Ministry of Digital Transformation is also working to create a legal framework that supports the growth of virtual assets in the country, Bornyakov added. Asked about Ukraine’s potential to become a European leader in cryptocurrency and blockchain development, Bornyakov said the ministry is studying and adopting best practices from countries such as Switzerland, the United Kingdom, Malta, Liechtenstein, and the United States.
Ukraine emerging as a cryptocurrency leader in Europe
Ukraine aims to become a top destination for cryptocurrency and blockchain companies in Europe. The Ministry of Digital Transformation is calling for clearer, more transparent regulation of digital assets and the broader blockchain sector.
The country’s efforts are gaining recognition, and Ukraine is increasingly prominent in the cryptocurrency sphere. In September, Chainalysis published its Global Crypto Adoption Index and ranked Ukraine first. Russia and Venezuela followed, while China and the United States placed further down the list. Ukraine scored highly on measures of on-chain value and total retail on-chain value.
The Stellar blockchain is gaining recognition as one of the world’s leading platforms. The Stellar Development Foundation’s partnership with the Ukrainian government comes less than a month after Bankhaus von der Heydt announced it would issue a euro stablecoin on the Stellar network.
Stellar Lumens (XLM) ranks among the top cryptocurrencies by market capitalization. The Stellar Development Foundation is committed to expanding fair access to the global financial system through open-source, peer-to-peer technologies.
Translated by Carolane de Palmas