Ukraine’s Central Bank Will Use Stellar To Run Digital Currency Pilot

Ukraine’s central bank will use Stellar to run a digital currency pilot and this project has the endorsement of the central bank and the Ministry of Digital Transformation as well so let’s read more today in our latest cryptocurrency news.

The country legally recognized cryptocurrency this year and now it is taking new steps in creating a central bank digital currency. The Stellar Development Foundation announced that the Stellar blockchain will be used to pilot the electronic version of the national currency of Ukraine.
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The pilot was carried out by the Fintech company Bitt and TASCOMBANK and will be overseen by the central bank of the country with the support of the Ministry of Digital Transformation.

The Ministry announced that it partnered with the Stellar Foundation and promotes the use of XLM cryptocurrency as well as the stellar blockchain in order to create a central bank digital currency because the country has been exploring it since 2017. CBDCs leverage decentralized ledgers like blockchains to enable faster and efficient payments in the national currency. The Deputy Minister of Digital Transformation Oleksandr Bornyakov said in a press release:

“This pilot project will serve as a technological basis for the issuance of electronic money, and is the next key step to advance innovation of payment and financial infrastructure in Ukraine.”

Ukraine’s path from partnership to trials means that it is well ahead of some of the other European countries as well as the European Central Bank that it is developing a digital currency. Most central banks are still looking for potential use cases of CBDCs. France is the farthest by any means and it even ran cross-border payments experiment along with the Swiss Bank. China on the other hand is in the middle of testing a digital currency and so are other countries as well. The Bahamas is the only one to launch such a project and its central bank rolled out the digital dollars to the 400,000 citizens back in 2020.

Cryptocurrency is quite popular in Ukraine to both politicians and people. Ukraine has the highest crypto adoption rate in the world and in 2019 the government even created the Ministry of Digital Transformation with the agenda of widening digital literacy and increasing internet accessibility. The ministry broadened its mandate to incorporate cryptocurrencies and drafted a bill earlier this year to legalize BTC with more legal protections to holders and allow banks to provide services to crypto companies as well. The Ministry thinks that these policies will attract more financail services to the country and the chairman of TASCOMBANK Voldymyr Dubey agrees:

“With the rapidly growing impact of virtual assets on our everyday life and economic landscape, it is essential to utilize the advantages of blockchain technology and new related products as a part of the bank’s long-term market strategy.”