An agreement has been signed by the Stellar Development Foundation with the Government of Ukraine to promote the establishment of a digital asset ecosystem, including a digital currency central bank framework, or CBDC.
The Digital Transformation Ministry of Ukraine announced Monday that it has entered into a Memorandum of Understanding with the Stellar Growth Foundation. The MOU discusses Ukraine’s Digital Assets and CBDC infrastructure growth plan. This includes funding digital asset initiatives, introducing and controlling the circulation of safe coins, and encouraging the creation of a CBDC.
A press release from the Stellar Development Foundation on Monday confirmed that the agreement was signed on Dec. 28.
Deputy Minister of the Ministry of Digital Transformation Oleksandr Bornyakov told Cointelegraph that facilitating a national cryptocurrency does not mean that the Ukrainian CBDC will be created by Stellar. Instead, the Stellar collaboration is expected to “enable quality decision-making regarding development of the virtual assets ecosystem in Ukraine.”
Bornyakov said his ministry was incorporating best practises from Switzerland, the United Kingdom, Malta, Liechtenstein and the United States when asked about Ukraine’s ability to lead cryptocurrency and blockchain growth in Europe and the world.
“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 National Bank of Ukraine has been investigating CBDCs since 2017, Bornyakov said. Ukraine is investigating, like many other nations, the effectiveness of the CBDC and its future effect on anything from monetary policy and financial stability to market acceptance.
There have been some rumblings that Ukraine is prepared to lead the crypto race in Eastern Europe, with the Digital Transformation Ministry calling for tighter digital asset legislation.
In September, in its global ranking on cryptocurrency acceptance, Chainanalysis awarded Ukraine the top spot. On measurements of on-chain value earned and overall on-chain retail value, Ukraine scored particularly well.
For all cryptocurrencies, Stellar’s Lumen (XLM) is officially ranked 13th in global market capitalisation. The key values of the Stellar Foundation include providing more equal access through open-source, peer-to-peer technologies to the global financial system.
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