The Ukrainian government announced yesterday that it intends to use the China Stellar block to create a platform for its national digital currency.
To Report The Ukrainian Ministry of Digital Transformation, Coin Telegraph, announced on Monday that it had signed a memorandum of understanding with the Stellar Development Foundation (SDF) to use it to create a digital asset ecosystem for its national digital currency.
The Central Bank of Ukraine has been conducting research in the field of national digital currencies since 2017. Oleksandr Bornyakov, Deputy Minister of Information Technology and Digital Transformation of Ukraine, has announced that the development of the country’s national digital currency will be based on cooperation between Ukraine and Stellar. He wrote in a statement:
The Ministry of Digital Transformation is working to create a legal environment for the development of Ukraine’s virtual assets. We believe that cooperation with the Stellar Development Foundation will help develop the country’s virtual asset industry and its use in the global financial ecosystem.
The ancestor of Ripple co-founder Jed McCaleb created Stellar, a non-profit organization, and its digital currency in 2014. Last month, it was announced that Germany’s BVDH would use Stellar to launch its StableCoin. Meanwhile, the German financial regulator, BaFIN, has approved the issuance of tokenized bonds on the platform.
Denelle Dixon, CEO of the Stellar Development Foundation, announced that the partnership with the Government of Ukraine and other stakeholders will be aimed at digitizing the national currency (GRUNA), which will be launched this month. Dixon said:
We have been negotiating with various governments and institutions around the world for a long time about the basic aspects of our national digital currency supply. We must not forget that many, if not all, of them are technology companies and have a large audience that is responsible for supporting them. Therefore, public-private partnerships are needed to do the right thing.
The Central Bank of Ukraine also announced in 2019 that it had used the private version of the Stellar Blockchain in its 2019 pilot program for digital grievance.
Jason Chlipala, CEO of Stellar, said in a statement, referring to the Stellar consensus mechanism, that it provides customers with reassurance that we have not seen in other similar blockchains. He said about this:
The Stellar consensus mechanism is appropriate for a central bank and is, in a sense, a reflection of a secure relationship that ultimately gives them a significant vote in the consensus protocol.