Share this article
Ukraine Government Picks Stellar Development Foundation to Help Build National Digital Currency
The Stellar Development Foundation's work with Ukraine's government to digitize the hryvnia will officially launch this month.
By Ian Allison
Updated May 9, 2023, 3:14 a.m. Published Jan 4, 2021, 2:00 p.m.
Ukraine’s government has chosen the Stellar blockchain network as a platform to build a central bank digital currency (CBDC).
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Announced Monday, the Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation (SDF) signed a Memorandum of Understanding to build out a “virtual assets ecosystem and national digital currency of Ukraine.”
The National Bank of Ukraine has been researching the possibility of CBDC implementation since 2017, and the Stellar partnership will now be the basis of its virtual currency development, according to Digital Transformation and IT Deputy Minister Oleksandr Bornyakov.
“The Ministry of Digital Transformation is working on creating the legal environment for the development of virtual assets in Ukraine,” Bornyakov said in a statement. “We believe our cooperation with the Stellar Development Foundation will contribute to development of the virtual asset industry and its integration into the global financial ecosystem.”
Stellar, the cryptocurrency and non-profit organization launched in 2014 by Ripple co-founder Jed McCaleb, was selected last month by German bank Bankhaus von der Heydt (BVDH) as the means to issue a euro stablecoin. German regulator BaFIN has also approved the issuance of tokenized bonds on Stellar.
See also: One of the World’s Oldest Banks Is Issuing a Euro Stablecoin on Stellar
Stellar Development Foundation CEO Denelle Dixon said the partnership with Ukraine’s government and other stakeholders to digitize the hryvnia will officially launch this month.
"We've been in conversations with governments and institutions all over the world about the key considerations for issuing CBDCs. It's important to remember many, if not all, of these organizations weren't designed to be technology companies and that they have many audiences that they are supporting," Dixon said via an email. "That makes a public-private partnership so essential to getting this right."
The National Bank of Ukraine mentioned the use of a “private version of the Stellar blockchain” as part of its E-hryvnia Pilot Project back in 2019.
Stellar’s consensus mechanism (SCP) gives issuers unique certainties they wouldn’t have on other public blockchains (like issuer-enforced finality), according to Stellar COO Jason Chlipala.
"SCP would well serve a central bank, reflecting the trusted relationships it would hold and ultimately award it a significant vote in the consensus protocol," Chlipala told CoinDesk via email.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Robinhood leaning into advanced traders as crypto volatility reshapes user behavior
The trading platform is increasingly catering to advanced crypto traders with tools tailored to active, tax-aware users, its head of crypto said.
What to know:
- Robinhood is increasingly targeting advanced crypto traders with new features like tax-lot selection and deeper liquidity access.
- The platform, once known for attracting beginners, is seeing more experienced users shift from rivals like Coinbase.
Top Stories
