The Deputy Prime Minister of Ukraine, Mikhail Fedorov, has stated that he wants to get paid in the country’s CBDC – e-hryvnia. Mikhail Fedorov made his intentions known at the World Economic Forum, in Davos, Switzerland.
CBDCs, also known as Central Bank Digital Currencies, are a new type of money that most central banks around the world are exploring as the next phase of the financial revolution. From the ECB to China and countries in Africa such as Nigeria, CBDCs are becoming a necessity for the current economic status.
The nation of Ukraine started exploring CBDCs in 2017 as an alternative financial tool to bring inclusion and safety to its citizens and as it relates to crypto trading. After five years, Ukraine released a draft for the CBDC with a projection of launching one in 2024.
Speaking at the event at Davos, Mikhail revealed that part of his goal is to make Ukraine a leading hub for the development and deployment of virtual currencies. Hence, he wants to be the first person to use the country’s digital currency.
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War in Ukraine and developing a CBDC
The war between Ukraine and Russia has caused a greater setback for the nation with 14 million Ukrainians, about a third of the population, displaced and $252 billion lost as of September 2022. However, the nation was able to receive donations in 2022 worth $54 million via digital currencies (cryptocurrencies).
While the projection for a national CBDC is envisioned for 2024, the director of the Digital Economy Directorate of Ukraine Yulia Parkhomenko said that the war with Russia has been a huge factor in achieving the goal. In partnership with decentralized blockchain, Polygon, and open source digital currency protocol, Stellar, the CBDC is planned to be launched.
The Deputy Prime Minister also revealed that two weeks ago he saw a pilot of the country’s CBDC which is also in line with the series of research made by the European Union through the ECB. He added that a new tax law for crypto and digital currencies will soon be added to the already existing virtual assets legislation in Ukraine.
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Why the World Bank needs “blockchain” to serve the world
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