Ukraine will launch a national cryptocurrency on the Stellar blockchain

Ukraine plans to launch a state digital currency (CBDC) based on the Stellar blockchain.

Ministrydigital transformation of Ukraine and StellarDevelopment Foundation (SDF) signed a memorandum of understanding, which states that the parties intend to create an ecosystem of digital assets and a national digital currency of Ukraine.

The parties signed the document back on December 28, 2020, but it was officially announced only on January 4.

Ukraine uses Stellar technology

The National Bank of Ukraine is studying the possibilityCBDC has been issued since 2017. According to Deputy Minister for Digital Transformation Alexander Bornyakov, the partnership with Stellar will form the basis for the development of a digital asset.

“The Ministry of Digital Transformation is working oncreation of the legislative framework necessary for the development of digital assets in Ukraine. We are confident that cooperation with the Stellar Development Foundation will contribute to the development of digital currency and its integration into the global financial ecosystem.", Bornyakov noted in a statement.

The memorandum outlines four vectors of partnership between Stellar and the Ministry:

• joint development of the virtual assets market in Ukraine;
• support for projects related to digital assets;
• implementation and regulation of stablecoin circulation in Ukraine;
• assistance in the development of digital currency of the National Bank of Ukraine.

Commenting on the news, the Stellar Development Foundation noted that they are proud of their partnership with the Ministry of Transformation of Ukraine and are looking forward to the opportunity to begin working together.

We’re honored to partner with the innovators atthe Ukrainian Ministry of Digital Transformation to help develop their strategy for virtual assets and facilitate development of a national digital currency. Exciting work ahead.https: //t.co/IFJ84SXcEF

- Stellar (@StellarOrg) January 4, 2021

The Stellar cryptocurrency appeared in 2014. Its creator was Jed McCaleb, the former co-founder of Ripple.

Last month, the German bank Bankhaus von derHeydt (BVDH) chose the project as a platform for creating a stablecoin pegged to the euro. Meanwhile, the German regulator BaFIN has approved the issuance of tokenized bonds based on Stellar. Last June, Samsung added Stellar support to its Galaxy lineup.

Stellar (XLM) price up 13%

The XLM cryptocurrency has risen sharply in priceand tested the high at $0.16 amid the publication of news. At the time of writing, XLM is trading at $0.15, up more than 13% on a daily basis.

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XLM ranks 13th in the cryptocurrency rankings,and its current market capitalization is $3.3 billion. Average daily trading volume has increased by 100% to $1.36 billion. Despite the string of positive news, the coin is still well below the all-time high of $0.93 reached in January 2018.

At the end of 2020, the project came under attack due to the US regulator SEC's lawsuit against Ripple. Some experts argued that XLM could be next in line after XRP.

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