Ukraine Launches Digital Hryvnia Pilot in 2023: Get Ready!
• Ukraine has announced that it will be launching its digital hryvnia currency by the end of 2023, which is earlier than the initial proposed date of 2024.
• The government has chosen the Stellar Development Foundation as a partner for this pilot phase.
• Mykhailo Fedorov, the minister in charge of Ukraine’s digital transformation, has said that he is pushing for an expedited timeline on creating this electronic hryvnia (e-hryvnia).
Ukraine Prepones Pilot Launch of Digital Hryvnia To 2023
Ukraine’s Ministry of Digital Transformation and the National Bank of Ukraine (NBU) have decided to move up the launch date of their digital hryvnia currency from 2024 to 2023. Mykhailo Fedorov, the minister in charge of Ukraine’s digital transformation, has said that he plans to speed up the process of creating an electronic version of their national currency.
Partnering with Stellar Development Foundation
In January 2021, The Stellar Development Foundation was selected as a partner by the ministry to assist in developing their virtual assets ecosystem and support their Central Bank Digital Currency (CBDC). In addition, Tascombank conducted pilot testing on the Stellar network in January 2021.
Strategy 2025 Proposal
The NBU presented a “draft e-hryvnia concept” to stakeholders such as cryptocurrency sector companies, banking institutions and other financial institutions in November 2022. This proposal is part of their Strategy 2025 plan and includes a CBDC implementation proposal.
Mykhailo Fedorov sent a letter to NBU urging them to hasten creation on an electronic version of hyrvnias. A pilot programme for this digital hyrvnias is due to be launched by NBU in 2024 according to existing Ukrainian law.
Benefits Of E-Hyrvnias
Adopting e-hrvyia would bring several benefits including greater efficiency and cost savings due to streamlined processes and lower transaction fees. It could also help increase transparency by providing access to information about transactions made with digital currencies which could lead to better auditing practices for businesses operating within Ukraine. Lastly, it could potentially make it easier for people without bank accounts or access traditional banking services through mobile wallets powered by blockchain technology.