Ukraine Government Picks Stellar Development Foundation to Help Build National Digital Currency
Ukraine’s government has chosen the Stellar blockchain network as a platform to build a central bank digital currency (CBDC).
Announced Monday, the Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation (SDF) signed a Memorandum of Understanding to build out a “virtual assets ecosystem and national digital currency of Ukraine.”
The National Bank of Ukraine has been researching the possibility of CBDC implementation since 2017, and the Stellar partnership will now be the basis of its virtual currency development, according to Digital Transformation and IT Deputy Minister Oleksandr Bornyakov.
According to statements published Monday, such projects will include assisting Ukraine's central bank on its digital currency efforts and, more broadly, "the development of a strategy for virtual assets in Ukraine."
The SDF will help Ukraine build infrastructure for a modern virtual asset market and “enhance Ukraine's status as an innovative digital country in the financial market in Eastern Europe,” according to a press statement.
Stellar, the cryptocurrency and non-profit organization launched in 2014 by Ripple co-founder Jed McCaleb, was selected last month by German bank Bankhaus von der Heydt (BVDH) as the means to issue a euro stablecoin. German regulator BaFIN has also approved the issuance of tokenized bonds on Stellar.
SDF will start activity with Ukraine in 2021, according to the statement, though an exact start date is unclear.