Ukraine is ramping up its efforts to launch the nation’s digital hryvnia, according to a senior government official. Negotiations are currently underway between the government and central bank, as well as involved businesses, to begin the pilot phase of the digital currency in the coming 12 months.
Minister States Ukraine Aims to Launch Digital Hryvnia sooner than Planned
Digital Transformation Minister Mykhailo Fedorov has stated that Ukraine is now pushing to bring the digital hryvnia to market more quickly. Originally, the pilot phase was slated to begin in 2024, but the government is now aiming to start it this year.
The first blockchain-backed hryvnia transactions have already been made. According to Fedorov, he was recently presented with an electronic hryvnia running on the Stellar platform. “It is being developed,” he said.
In January 2021, the Stellar Development Foundation was chosen by Ukraine’s central bank as a partner in building the nation’s digital asset infrastructure alongside a central bank digital currency (CBDC). In November, the NBU presented its “draft e-hryvnia concept” to members of the cryptocurrency, banking, and financial services industries. Tascombank conducted a test with the Stellar currency grid in January of this year.
The plan to introduce a CBDC is part of the NBU’s Strategy 2025. Fedorov, who is also Ukraine’s deputy prime minister, stated that he had written to the NBU noting the importance of accelerating the development of the digital hryvnia. “But we want to start this year, not postpone it to the next one,” he commented, adding that he is a crypto advocate.
Despite the ongoing conflict with Russia, Kyiv recently approved a “very ambitious plan” to become the most digitally advanced nation within the next two years. “Digitalization will be the basis for recovery. We are doing these reforms during the war,” Fedorov noted on the sidelines of the World Economic Forum in Davos last month, vowing that Ukraine will become “the best crypto jurisdiction in the world.”
Do You think Ukraine will launch the digital hryvnia this year? Let us know in the comments below.
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