Ukraine’s Ministry of Digital Transformation has selected the Stellar Development Foundation (SDF) to develop its central bank digital currency project (CBDC).

Ukraine chooses Stellar Foundation to develop its digital currency and national virtual asset strategy for the central bank

According to the official announcementboth parties have signed a “Memorandum of Understanding” to implement Ukraine’s crypto strategy. The National Bank of Ukraine has been investigating CBDCs for some time now reports on the matter since 2016.

The agreement will also bolster the country’s ongoing efforts to develop a legal framework for the country’s crypto industry and build infrastructure for such purposes.

Oleksandr Bornyakov, Ukraine’s Deputy Minister of Digital Transformation for IT Development, commented on the goals the government is aiming for with the Stellar deal:

Another important aspect of this collaboration is to contribute to the development of the infrastructure for a Ukrainian national digital currency. Most of the world’s leading countries are developing their own national digital currencies. (…) It shows Ukraine’s move towards one of the most important financial trends. At the Ministry, we strive to ensure the adaptation of our country to technological innovations and competitiveness in the financial market in Eastern Europe.

The memorandum outlines a “cooperation in the development of the virtual asset market in Ukraine”, “support for projects related to virtual assets”, plus the “facilitation” to enable a CBDC in the country.

Denelle Dixon, CEO of the Stellar Development Foundation, said:

We look forward to working with the Ministry and other stakeholders to digitize the hryvnia, bring Stellar-based tools and services to the people and businesses of Ukraine, and to introduce new collaboration opportunities in Ukraine for businesses in the Stellar region. ecosystem.

Both the ministry and the SDF will begin work on the project as early as January, which will also implement regulations for stablecoins in Ukraine.

Kyiv’s latest efforts to regulate the national crypto environment

Legalizing cryptocurrencies remains a priority in Kiev as the government has clearly stated that the benefits outweigh the risks.

At the beginning of 2020, the then Finance Minister Oksana Markarova arrived announced that operations conducted by crypto companies and other entities dealing with digital assets would be investigated and verified by Ukraine’s financial regulators.

What do you think of the deal between Ukraine and Stellar Foundation? Let us know in the comments below.

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