The Ukrainian government has selected the Stellar blockchain as the foundation for the creation of a central bank digital currency (CBDC). Joint work for the creation of a digital Ukraine hryvnia will start during the month.
Ukraine chooses Stellar for its digital hryvnia
An official statement tells us that the Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation (SDF) have just signed a cooperation agreement. As part of this agreement, the two entities will work on the development of a strategy for the development of digital assets in Ukraine.
In addition, the Stellar network should be used to host a digital version of the hryvnia , the national currency of Ukraine:
“The National Bank of Ukraine has been studying the possibility of setting up a central bank digital currency since 2017. We aspire to ensure the adaptation of our country to technological innovations and competitiveness in the European financial market of the Is, ”underlined Ukrainian MP Oleksandr Bornyakov.
Denelle Dixon , CEO of the Stellar Foundation, says she is thrilled that Stellar is playing a role in building Ukraine’s dedicated digital asset infrastructure:
“Ukraine has demonstrated its commitment to fostering an environment of innovation for the digital economy. We look forward to working on the digitization of the hryvnia, to bring Stellar-based tools and services to the people and businesses of Ukraine, and to introduce new partnership opportunities in Ukraine for businesses in the Stellar ecosystem. . „
Stellar should therefore not only provide its infrastructure, but also open the door to projects in its ecosystem towards a whole new market. In addition, the Stellar Foundation will officially launch its activity with Ukraine in January 2021.
Banks like Stellar blockchain
Recently, in early December 2020, one of the oldest banks in Europe, Bankhaus von der Heydt (BVDH), launched a euro-backed stablecoin on the Stellar blockchain .
Issued in the form of a token on the Stellar blockchain, the operation of this stablecoin could certainly be taken over for the creation of the digital hryvnia. The Stellar Foundation therefore already has sufficient technical resources to host a central bank digital currency.
These concrete applications of the network make it more visible, and propel Stellar towards “ a new wave of financial innovation „, Denelle Dixon supports.
Little by little, the infrastructure of Stellar is strengthened and the project manages to renew itself . Last October, Coinbase and Circle’s USDC stablecoin was deployed on the Stellar blockchain. An addition that greatly enhances Stellar’s capabilities as a cross-border payments network.