By
Bena Ilyas
May 7th, 2024
The revelation by the deputy president of Ukraine to receive his salary in the nation’s CBDC is just another indicator of the widespread adoption of digital assets globally.
The deputy prime minister of Ukraine, Mykhailo Fedorov, plans to be the first user of the nation’s central bank digital currency (CBDC) as he intended to take his salary in 2-hryvnia. He revealed his decision while speaking at the World Economic Forum. Like many other countries, Ukraine is working on a CBDC, which is currently in its pilot stage. The deputy prime minister and the government are raising the bar for the CBDC after Ukraine raised $54 million via crypto in 2022. Eventually, President Volodymyr Zelenskyy signed a virtual assets bill into law to legalize crypto in March.
Ukraine Deputy Prime Minster Wants to Be the First Tester of CBDC
According to the vice prime minister, Ukraine used crypto donations on military and medical supplies. Following the signing of the virtual assets bill, the country is looking forward to its CBDC, and Fedorov, who is also the minister for digital transformation, plans to be the first test user. He revealed through a translator during the Forum that the e-hryvnia pilot started two weeks ago. The deputy prime minister added that the vision is to roll out the CBDC in partnership with crypto company Stellar.
“I plan on becoming the first test user of the electronic hryvnia, and I plan on receiving my salary in e-hryvnia.”
He mentioned introducing new laws that will make the country a ladder in crypto assets. Noting that the plan is to make Ukraine the best crypto jurisdiction, Fedorov said it would be done through a comprehensive approach. He explained that there is a plan to address how to tax crypto assets for clarity on all digital assets.
One of Ukraine’s oldest banks, TASCOMBANK, showed an interest in blockchain technology after it leveraged the Stellar network for an electronic money pilot. While Ukraine gears towards crypto adoption, its rival country, Russia, is also reportedly planning to launch a gold-backed stablecoin. The government has been under several sanctions since it invaded Ukraine and has limited access to international trade. Hence, the stablecoin will serve as a payment mode for international transactions.
Increasing Confidence in CBDC
The revelation by the deputy president of Ukraine to receive his salary in the nation’s CBDC is just another indicator of the widespread adoption of digital assets globally. While crypto still faces antagonism, the Bank of America believes that CBDC ate the future of money and payments. Analysts led by Alkesh Shah noted that CBDCs could be the most significant technological advance in the history of money. The same goes for an executive partner at IBM Consulting, Shyam Nagarajan, who said CBDCs have the potential to revolutionize payment systems. He is confident that digital currencies will eventually become the general mode of payment.