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Paying ministry employees in e-hryvnia might be a good first test for the central bank’s digital currency, which is currently being developed.
Ukraine’s Deputy Prime Minister and Minister of Digital Transformation, Mikhail Fedorov, has unveiled a possible early use case for the country’s planned central bank digital currency (CBDC).
In a recent interview published by Ukrainian media outlet TSN, the minister revealed considerations within the ministry to test out the CBDC by using the electronic currency in staff salary payments:
“Frankly as one of the first pilots, we have on the table the question of paying salaries to employees of the Ministry of Digital Transformation in electronic hryvnia.”
Fedorov made these comments while arguing the case for the initial roll-out of the e-hryvnia to focus on a small, controlled use case rather than being deployed for social payments. According to Fedorov, there is the need to test the CBDC to prevent inappropriate use hence, his call for staff salary payments as a viable pilot scheme for the national digital currency.
As previously reported by Cointelegraph, Ukraine’s central bank got licence to issue digital currency following the country’s legislature’s passage of a new payment services law.
Over the last few years, the National Bank of Ukraine has been working on developing and releasing a digital currency. The Ministry of Digital Transformation is also involved in the CBDC area, having collaborated with the Stellar Development Foundation to build a collaborative strategy for CBDCs and digital assets in general.
CBDCs are frequently used to pay government employees as a trial implementation strategy for national digital currency projects.
Indeed, numerous initiatives have chosen to pay state staff in the CBDC among the few sovereign digital currencies presently in circulation.
China, one of the CBDC industry’s frontrunners, unveiled a blockchain-based system for digital yuan wage payments in June.