Ukraine Inks MoU with Stellar for Timely Advice on Creation of Crypto Infrastructure, Including CBDC
The government of Ukraine and Stellar Development Foundation has inked a deal to pave way for the creation of a cryptocurrency supporting environment, including an infrastructure for a central bank digital currency (CBDC).
Specifically, the Ukraine’s Ministry of Digital Transformation has inked a memorandum of understanding (MOU) with the Stellar Development Foundation.
The MOU underlines Ukraine’s strategy for creating cryptos and CBDC framework. This includes offering aid to ventures focused on cryptos, developing and regulating stablecoins, and fostering the creation of a CBDC.
According to the media release by Stellar Development Foundation, the agreement was inked on December 28. Oleksandr Bornyakov, deputy minister of the Ministry of Digital Transformation, clarified that Steller will not develop CBDC for Ukraine but it will offer appropriate advice for the creation of ecosystem supporting cryptocurrencies in Ukraine.
Bornyakov also presented his views regarding Ukraine’s ability to maintain an edge over Europe and rest of the world in crypto and blockchain development. The minister stated that the government is bringing together proven efficient methodologies from Switzerland, Malta, Liechtenstein, the United States and the United Kingdom.
“Crypto companies, blockchain startups and financial institutions — all of them seek a legally protected environment for conducting business. And the Ministry of Digital Transformation of Ukraine is working on building a legal framework that will offer a transparent and stable regulatory environment for blockchain and crypto companies.”
The minister further stated that the National Bank of Ukraine has been exploring CBDCs for the past three years. Similar to other countries, Ukraine is also studying the benefits of a central bank digital currency (CBDC) and also its likely effect on all segments of economy, including monetary policy, consumer adoption and financial stability.
Of late, there have been a lot of announcement about Ukraine getting ready to stay ahead of Eastern Europe in crypto sector, with the country’s Ministry of Digital Transformation urging transparent regulations on cryptocurrencies.
Back in September, Chainanalysis listed Ukraine as the number one country in the worldwide ranking of countries fostering crypto adoption. Specifically, Ukraine outclassed other countries on measures such as received on-chain value and aggregate on-chain retail value.
With a market cap of $3.49 billion, Stellar’s Lumen (XLM) is ranked the 12th largest crypto. The Stellar Foundation’s fundamental principles involve the creation of better un-biased access to the worldwide financial system through open-source, peer-to-peer technology.