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Stellar Development will try to revive the digital hryvnia project

The Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation have signed a Memorandum of Understanding and Cooperation in terms of which they will develop a strategy for the virtual asset market development in Ukraine.

"Cooperation with the Stellar Development Foundation will contribute to the virtual assets industry development in Ukraine and its integration into the global financial ecosystem. Another important aspect of this cooperation is the contribution to the development of the Ukrainian national digital currency infrastructure," said Deputy Minister of Digital Transformation Oleksandr Bornyakov.

The Memorandum provides for interaction between the Ministry of of Digital Transformation and the Stellar in the following areas:

  • cooperation in the virtual asset market development in Ukraine;
  • support for projects related to virtual assets;
  • introduction and regulation of the stablecoins circulation in Ukraine;
  • assistance in the development of the Central Bank of Ukraine digital currency.

At the same time, it is emphasized that the issue of the NBU digital currency (CBDC—Central bank digital currency) is the exclusive prerogative of the Central Bank of Ukraine. The contractor must be selected through a public tender.

"We look forward to working with the Ministry and other stakeholders involved in the development of virtual assets and new financial instruments based on the Stellar platform for people and businesses and providing new partnership opportunities in Ukraine for entrepreneurial activities in the Stellar ecosystem," says Denelle Dixon, CEO and Executive Director at the Stellar Development Foundation.

The Stellar is a real-time currency trading platform and a fork of the Ripple system. In 2018, the Stellar became the fastest growing ICO platform and also took the second position after Ethereum in terms of the number of ICOs conducted that year.

Context. Several years ago, in a pilot project of e-hryvnia, the NBU used a private version of the Stellar. However, thit was subsequently concluded that the platform was not suitable for the CBDC release. In the CBDC creation, the Ministry of Finance provides expert advice in the relevant working groups.

In November 2020, the NBU initiated a draft law "On payment services". It contains the definition of CBDC and secures the NBU's right to issue them.

There are two projects in the creation of the digital hryvnia. This is a product of the Kuna cryptocurrency exchange and a joint product of the NBU and Distributed Lab. Its MVP was presented in February 2020.

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