The Stellar Development Foundation has signed an agreement with the Ukrainian government to facilitate the creation of a digital asset ecosystem, including a central bank digital currency framework, or CBDC.
Ministry of Digital Transformation of Ukraine announced Monday it entered into a memorandum of understanding with the Stellar Development Foundation. The MOU outlines Ukraine’s strategy for developing digital assets and CBDC infrastructure. This includes supporting projects specializing in digital assets, implementing and regulating stablecoin circulation, and promoting the development of a CBDC.
A press release from the Stellar Development Foundation on Monday confirmed that the agreement was signed on December 28.
Oleksandr Bornyakov, Deputy Minister of the Ministry of Digital Transformation, told Cointelegraph that facilitating a national cryptocurrency does not mean Stellar will develop the Ukrainian CBDC. Instead, the Stellar partnership is expected to “enable high-quality decision-making regarding the development of Ukraine’s virtual asset ecosystem.”
When asked about Ukraine’s potential to lead cryptocurrency and blockchain development in Europe and the world, Bornyakov said his ministry is integrating best practices from Switzerland, the United Kingdom, Malta, Liechtenstein and the United States.
“Crypto companies, blockchain startups and financial institutions – all seek a legally protected environment in which to do business. And Ukraine’s Ministry of Digital Transformation is working on a legal framework that will provide a transparent and stable regulatory environment for blockchain and crypto companies.”
Bornyakov said the National Bank of Ukraine has been investigating CBDCs since 2017. Ukraine, like many other countries, examines the usefulness of a CBDC, as well as its potential impact on all of it monetary policy and financial stability to consumer acceptance.
There are were some rumbling that Ukraine is willing to lead the cryptorace in Eastern Europe, with the Ministry of Digital Transformation urges clearer regulation on digital assets.
In September, Chain analysis gave Ukraine the first place in its global cryptocurrency adoption rankings. Ukraine scored particularly high on measuring the value received in the chain and the total retail value in the chain.
Stellar’s Lumen (XLM) is currently ranked 13th in the global market cap for all cryptocurrencies. The core principles of the Stellar Foundation include creating more equitable access to the global financial system through open-source, peer-to-peer technology.