Ukraine has just signed a bill into law that would officially place its digital currency or Central Bank Digital Currency (CBDC) on a level equal to cash.
The country’s ”digital hyrvnia” was placed by Ukraine’s parliamentary body at a payments standard level. The official recognition of the digital currency actually came first before its actual rollout, as Ukraine’s CBDC is still in the research and development phase.
But the recently passed law clearly indicates that the country has sincere intentions and concrete plans to digitize its economy and keep up with the latest innovations.
This was also a bold move from Ukraine since it was only one of the handful of countries in the world to have passed an actual law just to support digital currency.
CBDC, as early as 2018
Even though the new law only mentioned the “CBDC” very briefly, it would provide a smooth and unrestricted path for digital hyrvnia to roll out throughout the country and be adapted easily by the citizens.
But Ukraine hasn’t jumped on the “CBDC craze” just because it is trending, in fact, as early as 2018, when nobody was paying too much attention to cryptocurrencies (and even lesser attention to CBDCs), the government was already testing its capabilities.
The government started with a prototype digital currency made from Lumens blockchain. After that, it has invited financial and blockchain experts to discuss the potentials of using CBDC for the country.
Joining other nations
Ukraine joins other nations such as France, Sweden, and China, to name a few in implementing CBDCs on a national scale, making way for a more improved economy made possible by reduced transaction costs and seamless cross-border payments.
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