Ukraine Accelerates Digital Hryvnia Project and Plans Pilot for this Year
According to a top-ranking government official, Ukrainian authorities are speeding up development of the electronic currency hryvnia. The executive power in Kyiv is currently in talks with the central banking and businesses involved in piloting the digital currency.
Minister: Ukraine Wants to Launch Digital Hryvnia Faster Than Planned
The head of Ukraine’s Ministry of Digital Transformation Mykhailo Fedorov said that the ministry wants to intensify efforts to develop the nation’s electronic currency (e-hryvnia). The original plan was to launch the pilot phase in 2024, but the government wants it to be completed this year.
Fedorov stated that the first blockchain transactions using the digital hryvnia had been conducted. The minister stated that the project was in progress and that he was recently presented with an electronic Stellar hryvnia.
The department selected the Stellar Development Foundation in January 2021 as a partner for the development of the country’s virtual asset ecosystem, including infrastructure to support the central bank digital currency (CBDC) in Ukraine.
In November 2022, the National Bank of Ukraine (NBU), presented a “draft E-hryvnia Concept” to members of crypto industry, banks, and other financial institutions. In January 2018, Tascombank conducted tests with the currency on Stellar network.
The central bank’s Strategy 2025 includes the plan to introduce the CBDC. Fedorov, Ukraine’s deputy prime Minister, stated that he had written a letter urging the NBU to accelerate the development of electronic hryvnia.
The current Ukrainian legislation requires that the NBU launch the pilot digital hryvnia program in 2024. This was reminded by the digital minister. Mykhailo Fedorov, a crypto advocate, stated that “But we want this year to start it.”
Despite ongoing conflict with Russia Fedorov has recently confirmed Kyiv’s “very ambitious plan” to make Ukraine the most digitalized nation in the next two-years.
“Digitalization will be the foundation for rebuilding. Fedorov said that reforms are being carried out during wartime, and also promised that the Eastern European nation would be “the best crypto jurisdiction” in the world.
Do you think Ukraine will be in a position to launch the digital currency hryvnia? Leave a comment below.