Ukraine Runs Test Program for Digital Currency

In early September, Ukraine passed a bill that made Bitcoin and other cryptocurrencies legal. Since then it has paved the way in properly regulating crypto-assets and making them available to its citizens. While it is currently illegal to use cryptocurrencies as a payment method, trading and holding them are accepted. The government may be looking to change this stance as it plans to launch its own digital currency.

It will launch on the Stellar blockchain. The Stellar Development Foundation announced the new partnership and the testing of a digital hryvnia, the local currency of Ukraine. This new pilot is being facilitated by inTech firm Bitt and TASCOMBANK and will be the first country in Europe to launch a digital currency.

The Ministry of Digital Transformation encouraged the launch of a digital currency. The partnership with Stellar was announced in January but Ukraine has been looking into going digital since 2017.

Digital currencies have been a hot topic worldwide. The use of blockchain for national currencies allows for cheaper and faster transactions while reducing fraud. Having an immutable ledger also allows for easier audits and faster finality times.

Ukraine will be the first in Europe to launch digitally, with France close behind them, who have been looking into digital currencies for a year now. Outside of Europe, many countries in Asia are testing digital currencies but the only country to launch one so far is the Bahamas. A lot of countries have not yet started work on a digital currency but eventually, they will need to to compete with blockchain technology.

The Ministry of Digital Transformation in Ukraine feels adamant that crypto-friendly regulation will bring new business. It also believes the currency can introduce new financial services to its citizens.

This is a good push for Ukraine to set itself up for the future of banking. There is currently no release date for the central bank digital currency but many believe it will take a few years to develop.

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Written by Tudor

Works as a developer and helps keeps the digital cogs turning. Leave them alone, they're busy.

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