The Stellar Development Foundation signed an agreement with the Ukrainian government to promote the creation of a digital asset ecosystem, including the development of a central bank digital currency (CBDC) framework.
The Ukrainian Ministry of Digital Transformation announced on Monday that it has signed a memorandum of understanding with the Stellar Development Foundation. This memorandum of understanding outlines Ukraine’s strategy for developing digital assets and CBDC infrastructure. These strategies include providing support for projects specializing in digital assets, regulating the circulation of stablecoins, and promoting the development of CBDC.
A press release issued by the Stellar Development Foundation on Monday confirmed that the agreement was signed on December 28.
Oleksandr Bornyakov, Deputy Minister of Digital Transformation, told Cointelegraph that promoting the development of national cryptocurrency does not mean that Stellar will develop Ukrainian CBDC. On the contrary, the cooperation between the two parties is expected to “make high-quality decisions for the development of Ukraine’s virtual asset ecosystem.”
When asked about Ukraine’s potential in leading the development of cryptocurrencies and blockchains in Europe and the world, Bornyakov said that the Ministry of Digital Transformation is integrating best practices in Switzerland, the United Kingdom, Malta, Liechtenstein and the United States.
He elaborated:
“Cryptocurrency companies, blockchain startups, and financial institutions are all seeking a legally protected business environment. The Ministry of Digital Transformation of Ukraine is working to establish a legal framework to provide a transparent and stable supervision of blockchain and cryptocurrency companies. surroundings.”
Bornyakov said that the National Bank of Ukraine has been studying CBDC since 2017. Ukraine, like many other countries, is exploring the utility of CBDC and its potential impact on monetary policy, financial stability, and user adoption.
There are rumors that, as the Ministry of Digital Transformation promotes the implementation of clearer digital asset regulations, Ukraine is ready to take a leading position in the encryption field in Eastern Europe.
In September of this year, Chainanalysis ranked Ukraine as the country with the highest adoption rate of cryptocurrencies in the world. From the perspective of the value on the chain, the value on the chain and the total value of retail on the chain received by Ukraine are particularly high.
The market capitalization of Stellar’s token Lumen (XLM for short) currently ranks 13th among all cryptocurrencies. The core principles of the Stellar Foundation include creating fairer access to the global financial system through open source code and peer-to-peer technology.
