The Stellar Development Foundation will be assisting the Ukrainian government in creating a “virtual assets ecosystem and national digital currency”, the foundation said in a press release on 4 January.
According to the announcement, a Memorandum of Understanding has already been signed between the Ministry of Digital Transformation and Stellar, which should “enhance Ukraine’s status as an innovative digital country”. As per the memorandum, the partnership will focus on the development of crypto markets in Ukraine; implementation and regulation of stablecoins in the country; and on the development of a digital currency for the Ukrainian central bank. The Deputy Minister of Digital Transformation for IT Development, Oleksandr Bornyakov, said in a statement:
“The Ministry of Digital Transformation is working on creating the legal environment for the development of virtual assets in Ukraine. We believe our cooperation with the Stellar Development Foundation will contribute to development of the virtual asset industry and its integration into the global financial ecosystem.”
Bornyakov further stressed the importance of creating a national digital currency, considering “most of the world’s leading countries” are already developing their own. In fact, the National Bank of Ukraine has been mulling the idea of implementing a CBDC since 2017, Bornyakov added.
This is not the first time Stellar has been named the network of choice for a digital asset project. Back in December one of the oldest banks in the world, Bankhaus von der Heydt, partnered with tokenization provider Bitbond to issue an Euro-backed stablecoin on the Stellar network, dubbed the EURB.