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The Ukrainian government intends to create its central bank digital currency (CBDC) in cooperation with the Stellar Development Foundation (SDF).

Ukraine will create a CBDC on the Stellar blockchain

The Ukrainian Ministry of Digital Transformation has signed a Memorandum of Understanding (MoU) with SDF for its CBDC project. As part of a partnership a national digital currency based on the Stellar blockchain will be created.

Commenting on cooperation with Stellar, Oleksandr Bornyakov, Deputy Minister for Digital Transformation and IT, said:

The Ministry of Digital Transformation is working on creating a legal environment for the development of virtual assets in Ukraine. We believe that our cooperation with the Stellar Development Foundation will contribute to the development of the virtual assets industry and their integration with the global financial ecosystem.

Stellar has previously revealed that it wants to be a platform used by governments around the world to broadcast CBDC. According to its founder, Jed McClaeb, the platform has already held talks with various authorities and concluded that central banks wishing to issue their national digital currencies should use a free network such as Stellar.

Stellar is also becoming one of the few public blockchain projects selected by the authorities to develop the CBDC project. In September 2020, Societe Generale used Tezos (XTZ) to conduct a pilot experiment by the Bank of France in the field of digital currency. Ethereum developer ConsenSys is also conducting a CBDC cross-border pilot study for Hong Kong.

More and more governments are adopting CBDC

Ukraine has become another country to actively join the CBDC race, although the country has been researching the government’s digital currency since 2017. Meanwhile, other countries are also working on CBDC, and some are ahead of others in this race.

At the end of December, the governor of the Turkish central bank – Naci Agbal said that his country intends to pilot a digital lira in the second half of 2021.

As reported recently, one of the officials of the Russian central bank stated that the CBDC may render the SWIFT banking payment system redundant in the future. Other countries that have commented on the potential of CBDC are Saudi Arabia and the United Arab Emirates (UAE).

Meanwhile, China continues to lead in the CBDC race. The state of the center is conducting mass tests in various cities. The city of Shenzhen carried out another $ 3 million airdrop in digital yuan. The city government has previously distributed $ 1.5 million in DCEP to 50,000 lucky winners.

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