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Ukraine to associate with Stellar Foundation to develop Ukrainian CBDC

Ukraine to associate with Stellar Foundation to develop Ukrainian CBDC

Ukraine has collaborated with Stellar Foundation to develop Ukraine CBDC (Central Bank Digital Currency). Today the Stellar Development Foundation (SDF) announced that it signed a deal with Ukraine’s Ministry of Digital Transformation to function on a central bank digital currency (CBDC), stablecoin and virtual asset infrastructure. 

Ukraine’s collaboration with Stellar is not only confined to developing the Ukraine CBDC. It involves Stellar facilitating to create a virtual assets market in the nation, implementing stablecoins utilizing the Stellar blockchain, and creating a digital currency for the Central Bank. Danelle Dixon, the Stellar Foundation’s CEO, says that the collaboration with Ukraine to digitize Ukrainian hryvnia will launch officially this month. 

Danelle Dixon states that in order to get CBDC right, it will welcome a public-private collaboration. He notes that many governments exclude the private sector as they develop their CBDC. Stellar is the crypto and non-profit organization established in 2014 by Ripple’s co-founder Jed McCaleb. The Stellar Foundation will commence working on the project this month.

Role of private sector in CBDC Project

Stellar also becomes one of the few public blockchain projects selected by government authorities to create a CBDC project. Multiple companies are contending to operate on CBDC projects, both consultants and protocols. Currently, ConsenSys anchored some research projects, and the U.S. Federal Reserve is working with the Massachusetts Institute of Technology (MIT). However, the organization that has welcomed the most comprehensive collection of participants is the Banque de France, which selected eight teams, numerous of which produced large consortia.

Ukraine becomes the latest country to enter the CBDC bandwagon, although the government has been operating CBDC research since 2017. Meanwhile, other nations resume exploring CBDCs, with some ahead of others. Meanwhile, China continues to be forward of the CBDC race, with CBDC tests performed in diverse cities. 

The city of Shenzhen completed another digital yuan test after airdropping $3 million worth of digital yuan. The city’s government earlier allocated $1.5 million of digital yuan to 50,000 lucky winners. Another Chinese city, Suzhou, back in December, also held a CBDC trial following the airdrop of $3 million in digital yuan to 100,000 winners.

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