Yesterday, the Ukrainian Ministry of Digital Transformation and the Stellar Development Foundation announced an agreement and a strategy to develop a national digital currency.

The agreement will see Stellar, the organization behind the XLM cryptocurrency, work on developing a digital currency for the Central Bank of Ukraine (CBDC).

The National Bank of Ukraine already began exploring the central bank’s digital currency in 2017, according to the announcement.

We are honored to partner with the innovators of the Ukrainian Ministry of Digital Transformation to help develop their strategy for virtual assets and facilitate the development of a national digital currency. We have an exciting job ahead.

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– Excellent (StellarOrg) January 4, 2021

The Ministry of Digital Transformation of Ukraine is working to create a legal environment for the development of digital currencies in Ukraine.

Mr. Oleksandr Bornyakov, Deputy Minister of Digital Transformation for Information Technology Development in Ukraine stated:

We believe that our cooperation with the Stellar Foundation will contribute to the development of the cryptocurrency industry and its integration into the global financial ecosystem.

Another important aspect of this cooperation is to contribute to the development of the infrastructure for a Ukrainian national digital currency.

He added:

Most of the world’s leading countries are developing their own national digital currencies.

In our Ministry we aspire to ensure that our country adapts to technical innovations and competitiveness in the financial market of Eastern Europe.

The Ukrainian digital currency CBDC will be developed based on the Ukrainian hryvnia fiat currency, and Stellar will help build the country’s digital currency infrastructure and provide support for related projects, as well as help implement regulations for stablecoins in Ukraine.

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The two parties will start working from this month.

But the announcement did not clarify whether the Ukrainian digital currency would be on the Stellar blockchain.

pointing site CoinDesk The National Bank of Ukraine previously mentioned the use of a special version of the Stellar blockchain in a report published on the cryptocurrency pilot program in 2019.

The step and partnership made by the Ukrainian government comes after a series of “Stellar” development of stable currencies in other countries.

Back in November 2020, Stellar partnered with the Shift Network to launch stablecoins in Argentina and Brazil to help with remittances between the two countries, while December saw Stellar agree to develop a euro-denominated stablecoin for the German Bank (BVDH).

Ms. Denelle Dixon, Executive Director of Stellar, said:

We believe that digital assets and national digital currencies are one of the most important innovations in our lives, and we are excited to play a role in creating the infrastructure for digital assets in Ukraine.

followed by saying:

Through the Ministry’s leadership, Ukraine has demonstrated its commitment to strengthening the innovation environment for the digital economy.

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We look forward to working with the ministry and other stakeholders to digitize the hryvnia, provide Stellar-based tools and services to individuals and businesses in Ukraine, and introduce new partnership opportunities in Ukraine for companies in the Stellar ecosystem.

occupied Ukraine recently ranked first in Chainalysis’s Global Crypto Adoption Index, which measures the use of Bitcoin and cryptocurrencies among ordinary citizens.

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