Ukrainian Ministry of Digital Transformation is the latest government organization to plan for a digital asset management system. They have partnered with Stellar Development Foundation to facilitate the development of a virtual asset ecosystem.
It seems that the government plans work on a CBDC, too. The recent Memorandum of Understanding and Cooperation between them and the Stellar Development Foundation is in part focused on this plan.
Developing a Virtual Asset Ecosystem
After more than a decade that blockchain and cryptocurrencies have dominated the news headlines, governments are starting to acknowledge the power of this technology. China started the movement to develop a central bank digital currency and somehow made it a competition for other countries. Now the European governments are trying to join the movement. The Ukrainian government is among them, which has decided to partner with the Stellar Development Foundation (SDF) to develop the digital asset market’s infrastructures.
The Ministry of Digital Transformation and SDF will partner under a Memorandum to develop the CBDC infrastructure. According to the announcement, Oleksandr Bornyakov, Deputy Minister of Digital Transformation for IT Development, said:
“The Ministry of Digital Transformation is working on creating the legal environment for the development of virtual assets in Ukraine. We believe our cooperation with the Stellar Development Foundation will contribute to the development of the virtual asset industry and its integration into the global financial ecosystem.”
The signed Memorandum of Understanding and Cooperation between the Ukrainian government and SDF focuses on multiple steps needed for developing a robust digital asset ecosystem and infrastructure. They will develop the basics of a digital asset market and support the projects related to this concept. Implementing and working on the regulatory basis of a stablecoin in Ukrain is another aspect of this partnership. The essential step focuses on developing a CBDC for Ukrainian citizens.
Stellar Development Foundation has done a strategic movement in partnership with the Ukrainian government. It will surely help the Stellar community, too.
Denelle Dixon, CEO, and Executive Director, Stellar Development Foundation, said:
“We believe digital assets and national digital currencies are one of the most important innovations of our lifetimes, and we are excited to play a role in the creation of Ukraine’s digital asset infrastructure. Through the leadership of the Ministry, Ukraine has demonstrated its commitment to fostering an environment of innovation for the digital economy. We look forward to working with the Ministry and other stakeholders to digitize the hryvnia, to bring Stellar-based tools and services to the people and businesses of Ukraine, and to introduce new partnership opportunities in Ukraine to businesses in the Stellar ecosystem.”
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