The fact that the Deputy President of Ukraine receives his pay in the nation's CBDC was recently brought to light, is just one more indication of the broad acceptance of digital assets around the world.
Mykhailo Fedorov, the Deputy Prime Minister of Ukraine, aims to be the first user of the nation's Central Bank Digital Currency (CBDC) as he wants to take his income in 2 Hryvnia. He informed the audience of his decision during his speech at the World Economic Forum.
The CBDC project that Ukraine is working on, which is now in the pilot stage, is similar to those being worked on in many other nations. Following Ukraine's successful fundraising of $54 million via crypto currency in 2022, the deputy prime minister and the government have set the bar for the CBDC.
In the end, the President of Ukraine, Volodymyr Zelenskyy, legalized crypto currency in March by signing a measure into law that regulated virtual assets.
The Vice Prime Minister of Ukraine stated that crypto currency contributions were utilized to purchase military and humanitarian items. Following the passage of the virtual assets bill and its signing into law, the nation is eagerly anticipating the launch of its CBDC, and Fedorov, who also serves as the minister for digital transformation, intends to be the first test user.
During the Forum, he disclosed, via a translator, that the pilot for the e-hryvnia had begun around two weeks prior. Mykhailo Fedorov also mentioned that the rollout of the CBDC is planned in collaboration with the crypto currency startup Stellar.
"I intend on being the first test user of the digital hryvnia, and I plan on earning my income in e-hryvnia," said the candidate. I plan to receive my salary in e-hryvnia."
He stated introducing new regulations that will position the nation as a leader in the crypto asset market. Fedorov stated that a complete strategy would be utilized to make Ukraine the most favorable jurisdiction for crypto transactions. He stated that there is a method to combat how and where to tax digital currencies for clarification on all digital assets and that this plan is now in the works.
After utilizing the Stellar blockchain for an electronic cash trial, one of Ukraine's largest bankers, TASCOMBANK, demonstrated a curiosity in blockchain technology. At the same time as Ukraine is preparing to accept crypto currencies, Ukraine's competitor country, Russia, is working on plans to introduce a gold-backed stablecoin.
Since it attacked Ukraine, the administration has been subject to several sanctions, and its access to global trade has been severely restricted. As a result, the stablecoin will function as a form of payment for transactions conducted on a worldwide scale.
Developing a Stronger Faith in the CBDC
The fact that the Deputy President of Ukraine receives his pay in the nation's CBDC was recently brought to light, just one more indication of the broad acceptance of digital assets worldwide. The Bank of America believes that CBDC is the future of money and payments, despite cryptocurrency being opposed.
CBDCs have been called "perhaps the most major technological innovation in the history of money" by analysts working under the direction of Alkesh Shah. The same may be said of Shyam Nagarajan, an executive partner at IBM Consulting, who stated that CBDCs have the potential to change payment systems. He is certain that virtual currencies will one day replace traditional ones as the standard method of monetary exchange.