The Ministry of Digital Transformation of Ukraine signed a memorandum with the Stellar Development Foundation for the development of the digital assets industry and the development of the Central Bank cryptocurrency.
First of all, the cooperation of the Ukrainian government with Stellar is aimed at creating conditions for the further development of cryptocurrencies. The memorandum also implies support for projects working with digital assets, the introduction of stablecoins and their regulation, as well as the development of the state digital currency of the National Bank of Ukraine (NBU).
Deputy Minister of Digital Transformation of Ukraine Alexander Bornyakov explained that partnership with Stellar will allow making effective decisions for the development of the entire ecosystem of digital assets in Ukraine. Bornyakov added that by doing so, the ministry is integrating the best practices of Switzerland, Great Britain, Malta, Liechtenstein and the United States, where the cryptocurrency industry is quite developed.
“Startups, cryptocurrency companies and financial institutions always need a secure legal environment to do business. The Ministry of Digital Transformation of Ukraine is working to create a framework that will form a transparent and stable regulatory environment for firms working in the field of blockchain and cryptocurrencies, ”Bornyakov said.
Stellar Development Foundation CEO Denelle Dixon said cryptocurrencies and government digital currencies are important innovations in today’s reality. Therefore, Stellar executives are pleased to contribute to the development of the Ukrainian digital asset infrastructure. Dixon expressed her readiness to work together with other stakeholders to implement Stellar-based tools, as well as to provide services to individuals and legal entities in Ukraine.
The National Bank of Ukraine has been exploring the possibility of issuing its own digital currency since 2017. The regulator is conducting research on how the Central Bank’s cryptocurrency can be useful and how it can affect the monetary policy and financial stability of the country. Earlier, NBU experts came to the conclusion that the electronic hryvnia can harm the traditional banking system by reducing the amount of paper money in circulation. However, now Ukraine’s cooperation with Stellar is aimed at introducing a state cryptocurrency and working out clear rules for digital assets.
