The Ukrainian government is working with the Stellar Development Foundation (SDF) to develop a digital central bank currency (CBDC).
Ukraine is developing CBDC on the Stellar Blockchain Network
The Ukrainian Ministry for Digital Transformation has signed a Memorandum of Understanding (MoU) with the SDF for its CBDC project. As part of the partnership, the national digital currency of Ukraine will be developed in the Stellar blockchain network.
Oleksandr Bornyakov, Deputy Minister for Digital Transformation and IT, said of the collaboration with Stellar:
“The Ministry of Digital Transformation is working to create a legal environment for virtual asset development in Ukraine. We believe our collaboration with the Stellar Development Foundation will help develop the virtual asset industry and integrate it into the global financial ecosystem. “
As previously reported by BTCManager, Stellar announced that it should be the platform for governments worldwide to issue CBDCs. According to Stellar’s founder Jed McClaeb, the blockchain platform has already spoken to various governments and states that central banks that are ready to issue their national digital currencies should use a permissionless network like Stellar.
Stellar also becomes one of the few public blockchain projects selected by government agencies to develop a CBDC project. In September 2020, Societe Generale Tezos (XTZ) commissioned a CBDC pilot project for the Bank of France’s digital currency experiment. Ethereum developer ConsenSys is also conducting a cross-border CBDC pilot study for Hong Kong.
More governments welcome CBDC
Ukraine is the youngest country to join the CBDC train, although the country has been doing CBDC research since 2017. Meanwhile, other countries continue to research CBDCs, with some ahead of others.
In late December, Turkey’s central bank governor Naci Agbal said the country hoped to launch a national digital currency pilot in the second half of 2021.
On the other hand, a Russian central bank official said that in the future, CBDCs could make SWIFT’s bank payment system unnecessary. Other countries that commented on the potential of CBDC were Saudi Arabia and the United Arab Emirates (UAE).
Meanwhile, China remains ahead of the CBDC race as CBDC tests have been conducted in different cities. Shenzhen City conducted another test on digital yuan after tossing $ 3 million worth of digital yuan. The city’s government previously distributed $ 1.5 million worth of digital yuan to 50,000 lucky winners. $ 5 million worth of digital yuan to 50,000 lucky winners.
Another Chinese city, Suzhou, ran a CBDC trial back in December after 100,000 winners received a $ 3 million digital yuan.
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