By Nathan Ferguson
According to an announcement made by Stellar Development Foundation, the Stellar blockchain will be utilized to give rise to a digital version of their national currency known as, hryvnia.
National Digital Currency
Stellar made the announcement of this new development just today, highlighting the utilization of the Stellar blockchain to power up a digital alternative to the national currency of Ukraine. The process of the development will involve FinTech company, Bitt and the TASCOMBANK and will be supervised by Ukraine’s official central bank, with additional support coming from the Ministry of Digital Transformation. The Ministry of Digital Transformation was formed in 2019 with the intentions of spreading information about digitization and improving access to the internet for the people of Ukraine.
Origins of the Project
However, this project isn’t something that is completely new in the financial sector. Back in the start of the year, the Ministry had revealed that it was joining forces with the Stellar Development Foundation in order to push forward with the introduction of a new central bank digital currency, which was a development that was being looking into by Ukraine since the past 4 years. Central Bank Digital Currencies basically leverage blockchains in order to make payments of national currency faster and way more efficient than before.
The Deputy Minister of Digital Transformation, Oleksandr Bornyakov mentioned in a public statement that the project will work as a base, contributing towards the introduction of digital money and is the next step towards technological innovation financial systems in the region of Ukraine.
Ahead in the Game
This new project from likes of Ukraine highlights it technological financial innovation, meaning that is already steps ahead compared to most of the European nations and the European Central Bank, when it comes to involvement with digital money. Many of the central banks in Europe are still in the process of research about how central bank digital currencies can be taken advantage off.
Crypto Booming in Ukraine
Looking at the current situation, Cryptocurrency has had quite the influence over both the people and politicians around Ukraine, which has resulted in the country having the highest number of crypto adoptions compared to everyone around the world. This statis was given to Ukraine by Chainalysis, a blockchain analytics company.