It is not only there China to go in the direction of a State cryptocurrency. The Stellar Development Foundation (SDF) has in fact recently announced the signing of an agreement with Ukrainian Ministry of Digital Transformation in order to work on a central bank digital currency (CBDC), as well as a stablecoin and infrastructure for virtual assets.
A real plan that should lead to one digitization of the Ukrainian economy aimed at facing a series of challenges which are expected to be very tough in the near future.
The statements of Oleksandr Bornyakov and the Stellar Development Foundation
From the Kiev government it was Oleksandr Bornyakov, competent deputy minister, to remind you that most of the leading countries in the world are developing their own national digital currency. And that, for its part, the National Bank of Ukraine has been studying the possibility of implementing the CBDC since 2017.
For Stellar Development Foundation it was instead Denelle Dixon, CEO and Executive Director of the organization, to affirm his enthusiasm for the agreement reached with Ukraine. Which will begin to be operational over the next few weeks.
The Bank of Ukraine instead defined the agreement as a project aimed at creating a “private version of the blockchain of Stellar (XLM) ". Which would be part of a pilot project called E-hryvnia, which would have started two years ago.
The economic crisis sinks Ukraine
The Ukrainian government's decision comes at a time when the country is experiencing a catastrophic economic situation. Which has been going on for many years, so much so that according to the Ministry for Social Policies over 45% of families found themselves below the poverty line at the end of the year. A crisis naturally aggravated by the Covid-19 pandemic, which forced a very hard lockdown.
The worsening of the crisis has also pushed the premier Denys Smyhal to recall the International Monetary Fund. Who had previously suspended the aid plan, aggravating the crisis in Kiev, which by now would have collapsed without the promised 5 billion in aid. Which, however, will involve the usual cuts expected on these occasions. With far-reaching consequences on a population already put to the test and at a time when the war in the Donbass, never over, drains resources that could be used in quite another way.
A shot in terms of image for Stellar
For Stellar, the deal with the Ukrainian government was a major blow in terms of image. For the project conceived and launched by Jed McCaleb in 2014, moreover, it is the confirmation of a positive trend. In fact, previously Stellar was chosen by the German bank Bankhaus von der Heydt (BVDH) with the aim of creating and issuing a stablecoin in dollars. While the control body of the German financial markets, BaFIN, had decided to approve the issuance of tokenized bonds on Stellar.
A series of agreements and events which had a good effect on the token's listing. Which is grown in the order of 400% over the last 12 months. A trend that seems destined to continue, on the wave of the happy moment crossed by the most authoritative Altcoins. Driven by the increasing attention of public opinion and investors looking for alternative assets on which to converge their money.