In 2021, Ukraine will begin developing its own CBDC digital currency on the Stellar blockchain, joining the many countries around the world that are betting on the development of this innovation to stay at the forefront of new technologies.
The Ministry of Digital Transformation of Ukraine signed a partnership with the Stellar Development Foundation to create the new digital currency CBDC of the country. According to the release Shared by the Foundation, the alliance will allow Ukraine to develop a complete digital infrastructure, necessary for the creation, issuance and management of the new CBDC currencies, as well as to facilitate the development of an entire ecosystem of digital assets in the country.
Among its growth plans, Ukraine considers it essential to begin developing its own CBDC for 2021, which will allow the country to have a modern and attractive digital asset market infrastructure, helping the nation to improve its positioning and status as an innovative and cutting-edge country in the financial market in Eastern Europe. The signing of this agreement between the Ministry of Digital Transformation and the Stellar Foundation pursues this objective, and is a fundamental step for Ukraine to begin its commitment to new technologies.
The Stellar Foundation is a non-profit organization established to support the development and growth of the network. Stellar, a system and blockchain designed to serve as an intermediary in currency conversion.
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A race that is just beginning
Deputy Minister of Digital Transformation for IT Development of Ukraine, Oleksandr Bornyakov, noted that many leading countries in the world are already developing their own national digital currencies, so Ukraine cannot be left behind. According to his statements, the country is focused on being a digital nation that supports technological and financial innovations, which is why it has been studying the possibility and feasibility of issuing such a digital currency since 2017.
The studies and analyses that the nation has developed since then lead it to speak out today in favor of this development, and to join the global race for the issuance of sovereign digital currencies. The first nations to issue their own CBDCs will have the competitive advantage, in innovation and development, over the rest of the nations.
“At the Ministry, we aim to ensure our country's adaptation to technological innovations and competitiveness in the financial market in Eastern Europe.”
On the other hand, the vice minister pointed out that the speed, scalability and exceptional sustainability offered by the blockchain Stellar's role in its financial products and services is what motivated the signing of a cooperation agreement with this network. Through the Stellar Foundation, the Ministry of Digital Transformation will be able to efficiently contribute to the development of Ukraine's virtual asset industry and its integration into the global financial ecosystem.
CBDCs, the control of banks in the digital world
Countries around the world are securing their participation in new forms of money of the future, such as CBDCs, digital currencies developed and issued by central banks, as an action in clear response to the potential risk that digital currencies can pose. cryptocurrencies, and digital assets for themselves.
The dominance and social control that governments and central banks exercise over society through yourror fiat, can be compromised by the freedom and decentralization offered by crypto assets, in addition to the innovation they represent, by allowing fast, cheap and efficient cross-border payments. For this reason, the world's central banks have begun to bet on the issuance of their own sovereign digital currencies, the CBDC, which guarantee their monetary sovereignty. And while this is a great innovation that will allow banks to modernize and update their services and be much more efficient, we cannot ignore that these currencies are the alternative for these entities to continue the financial monopoly they have maintained over society to date.
The most advanced nation in this development, so far, is China, which has already announced the launch of a third public test to study the viability and feasibility of its digital currency. DCEPIn Europe, the European Central Bank, together with several of the central banks of member countries of the European Union, are also evaluating the feasibility and implications of issuing a digital euro, and will announce in 2021 whether it will issue the new currency in the coming years.
Continue reading: CBDCs: the money of the next era and a potential threat to banks
