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Stellar Blockchain has issued a pilot for digital currency, Ukraine Central Bank to oversee process

The has officially been endorsed by both the country’s Central Bank and the Ministry of Digital Transformation.

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The Stellar Development Foundation has announced that Stellar Blockchain will be issuing a pilot that’ll oversee digital versions of the Ukraine currency titled Hryvnia. This move is the next most logical step along the way for Ukraine, considering how popular Bitcoin is in the country.

The popularity surged to the point where cryptocurrency was just this year. This pilot will be spearheaded by TASCOMBANK and FinTech Firm Bitt, with the Central Bank of Ukraine overseeing the entire process after receiving the Ministry of Digital Transformation’s blessing on their endeavor.

The ministry announced its partnership with Stellar Development Foundation in order to promote the XLM cryptocurrency as well as the Stellar blockchain back in January. Their joint venture’s objective was to create a digital currency for the central bank, which was an idea their national bank had been toying with since as far back as 2017. CBDC’s leverage allowed for the decentralization of ledgers like blockchains, making way for faster payments using the national currency.

A press release was held wherein the Deputy Minister of Digital Transformation, Oleksandr Bornyakov said “This pilot project will serve as a technological basis for the issuance of electronic money, and is the next key step to advance innovation of payment and financial infrastructure in Ukraine.”

While most Central Banks are still looking into the potential the CBDCs can best be used for, Ukraine’s development quick progression to a trial proves it’s ahead of the curve compared to most European countries and the European Central Bank in terms of digital currency development.

When it comes to progress, though, France has made some good strides, coming out ahead of all European nations. Recently, they sanctioned a cross-border payments experiment partnered with a Swiss Bank. Moving away from Europe, China is in the midst of testing out a digital currency, along with a group of other countries if CBDCTracker.org is to be believed.

Out of them all, the Bahamas are the ones that have successfully launched theirs, as the Central Bank began rolling out sand dollars to the Caribbean nations’ near 400,000 citizens last year.

Crypto is incredibly popular in Ukraine among people and politicians alike. The country has the largest adoption rate in the entire world when it comes to crypto, per a September ranking from Chainalysis done in 2020. In 2019, their government launched the Ministry of Digital Transformation with the objective of widening digital literacy as well as the internet’s increasing accessibility.

The ministry’s mandate has been widened to accommodate cryptocurrencies as they drafted a bill this year that legalized Bitcoin as well as other cryptocurrencies. This legislation came with legal protections to holders as well as gave the all- clear on banks to provide services to any and all crypto firms.

TASCOMBANK Chairman Volodymyr Dubey and the ministry both firmly believe that crypto-friendly policies are sure to attract a new range of financial services to the country.

Dubey said “With the rapidly growing impact of virtual assets on our everyday life and economic landscape, it is essential to utilize the advantages of blockchain technology and new related products as a part of the bank’s long-term market strategy.”

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