The Ministry of Digital Transformation of Ukraine has signed a memorandum with the Stellar Development Foundation for the development of the digital asset industry and the development of the Ukraine Central Bank’s cryptocurrency.
The cooperation of the Government of Ukraine with Stellar is aimed for the further development of cryptocurrencies. The memorandum also includes support for projects working with digital assets, the introduction of stable coins and their regulation, as well as the development of the state digital currency of the National Bank of Ukraine (NBU).
Deputy Minister of Digital Transformation of Ukraine Alexander Bornyakov explained that the partnership with Stellar will allow making effective decisions for the development of the entire ecosystem of digital assets in Ukraine. Bornyakov added that by doing so, the ministry integrates the best practices of Switzerland, the United Kingdom, Malta, Liechtenstein and the United States, where the cryptocurrency industry is quite developed.
“Startups, cryptocurrency companies and financial institutions always need a secure legal environment for doing business. The Ministry of Digital Transformation of Ukraine is working on creating a framework that will form a transparent and stable regulatory environment for firms working in the field of blockchain and cryptocurrencies,” Bornyakov said.
Denelle Dixon, CEO of the Stellar Development Foundation, said that cryptocurrencies and government digital currencies are important innovations in modern reality. Therefore, the Stellar team is happy to contribute to the development of the Ukrainian digital asset infrastructure. Dixon expressed her willingness to work together with other stakeholders to implement Stellar-based tools, as well as to provide services to individuals and legal entities in Ukraine.
The National Bank of Ukraine is studying the possibility of issuing its own digital currency from 2017. The regulator is conducting research on how the Central Bank’s cryptocurrency can be useful and how it can affect the country’s monetary policy and financial stability. Earlier, the NBU experts came to the conclusion that the digital assets can harm the traditional banking system, reducing the amount of paper money in circulation. However, now Ukraine’s cooperation with Stellar is aimed at introducing a state-owned cryptocurrency and working out clear rules for digital assets.