Ukraine develops its own CBDC even during the war

Stellar CEO Denelle Dixon said his company is still working with Ukraine on its central bank digital currency (CBDC) despite the armed conflict between Russia and Ukraine. The Ukrainian CBDC is still moving forward, according to an interview with Stellar CEO Denelle Dixon. Dixon gave a general update on Ukraine's CBDC project during an interview with Coindesk on March 21. The latest significant update on the Ukrainian CBDC was released in December when it was stated that Bitt and Tascombank would use Stellar to pilot a digital version of the Ukrainian hryvnia. Dixon said CBDC is "something [Stellar] will continue to work with [Ukraine] on." He also noted that there were some delays, as the people involved were unable to access their offices and said he did not know when the CBDC could be launched and that he did not have an update on the matter. Previous announcements also did not reveal a potential launch date for the stablecoin.

Dixon, however, said Ukrainian President Volodymyr Zelensky intended to "move to a cashless society" later this year. Dixon noted that although Ukraine is accepting other cryptocurrencies and "stepping up their use". Rather, he argues that the Ukrainian CBDC project is primarily aimed at "ensuring the strength of the hryvnia". He explained that the Zelensky government does not want the Ukrainian hryvnia to be undermined by any other currency that could take its place. Dixon also commented that Ukraine has recently started accepting cryptocurrency donations following the conflict, calling the decision a sign of innovation within the Ukrainian government. Last week, Ukraine signed a law that will create a legal framework for digital assets. Among other things, such a law should help companies manage cryptographic donations more effectively.

by Alessandro Crea Thursday 24 March 2022 11:00

COMMENT: Other articles talk about the acceptance of cryptocurrencies. In reality, those in difficulty seek all possible ways. The fact that they have commissioned a company to study the CBDC means that they are in the hands of the solutions proposed by that company, perhaps with an exclusive contract. It is a big limitation because they will not be able to take into consideration our proposals for a digital currency that respects the CBDC rules.

UKRAINE ARTICLE CBDC