The Ukrainian government has partnered with the Stellar Development Foundation for the creation of the national blockchain on which the government intends to issue its digital validity, a stablecoin that will revolutionize the entire financial system of the country. The much discussed digital currencies issued by central banks will therefore be a CBDC, so it will be a centralized blockchain, controlled by the state government but rather than creating its own blockchain, it was preferred to rely on an existing one.
In reality, the Ukrainian government already had an ongoing experimentation with the Stellar Development Foundation (SDF) and a memorandum of understanding was signed only at the end of 2020 in which the Foundation is committed to supporting specialized asset projects digital assets, implement and regulate the circulation of stablecoins and stimulate the development of CBDC. Current regulations do not provide for the use of digital assets and for this reason the government is working quickly to streamline bureaucracy in favor of crypto. Ukraine is therefore a candidate to be the European leader in the cryptocurrency sector but the German Bankhaus von der Heydt (BVDH) announced that it would issue a Euro stablecoin on the Stellar blockchain.
The Stellar Foundation, whose blockchain was founded by Jed McCaleb, co-founder of Ripple, is committed to creating equal access to the global financial system through open-source and peer-to-peer technology. Stellar Lumen (XLM) currently has moved up the CoinmarketCap rankings to rank # 9 with a market capitalization of nearly $ 7 billion, a project that could capitalize if other governments adopt their own blockchain for the future. issuing of nations currencies.
Denelle Dixon, CEO of the Stellar Development Foundation, said the partnership with the Ukrainian government and other interested parties to digitize the Ukrainian national currency will be officially launched later this month. Although CBDCs have nothing to do with the sense for which the concept of blockchain was born with Satoshi Nakamoto, i.e. the freedom of exchange from banking and government lobbies, it will still bring benefits to national companies that will have the opportunity to benefit from a technology. advanced that lowers costs and optimizes processing. However, an interesting project that I think will be carefully monitored by all the other European national governments and beyond, and represents the pilot project of an innovation that will take off from this year.
Ukraine is the first European nation to adopt blockchain and digital currency but it is not the first in the world as China has already launched a study last year for the issuance of its Central Bank Digital Currency or the digital yen, only that the government has shown itself against all other cryptocurrencies, outside its own currency.
We will follow with interest the future developments which I am sure will have a widely participated following from many other countries