- Ukraine’s Vice Prime Minister says he plans on receiving his salary in e-hryvnia.
- Ukraine’s new crypto and CBDC laws will open the door for the virtual asset market launch.
- Russia to collaborate with Iran in launching gold-backed stablecoin.
Ukraine’s Vice Prime Minister, Mikhail Fedorov, wants to make the country a headliner for crypto by being the first user of a planned new central bank digital currency (CBDC).
The National Bank of Ukraine revealed considerations for an electronic version of the country’s hryvnia last November.
According to the regulator, the e-hryvnia would effectively fulfill all monetary tasks while supplementing cash and noncash versions of the hryvnia. It would also focus on usability, allowing all demographic groupings, legal entities, governmental authorities, banks, and financial institutions easy access to the CBDC.
Other possible uses for the e-hryvnia would be for supporting smart contracts technology to program various settlement logic models, reduce government spending on the administration, control the targeted use of funds, and pay out targeted social benefits.
The Ukrainian CBDC is currently in its pilot phase and has undergone various tests for architecture, design, features, and user advantages.
Ukraine’s Deputy Prime Minister To Take Salary in CBDC
Fedorov shared his vision of getting paid in e-hryvnia with reporters at the World Economic Forum. Speaking on plans to introduce the CBDC via a partnership with the decentralized protocol Stellar, the Deputy Prime Minister added,
“Two weeks ago, I saw a pilot of the electronic e-hryvnia in Ukraine. I plan on becoming the first test user of the electronic hryvnia, and I plan on receiving my salary in e-hryvnia.”
He added that new laws would make Ukraine the world’s leading jurisdiction for crypto assets.
“We plan on addressing the taxation side so we can have a comprehensive approach to legalizing all digital assets.”
Ukraine To Introduce New Tax Law For Crypto
The Ukrainian government signed its virtual assets bill into law early last year, legalizing crypto barely weeks after Russia’s invasion and the frenzy of crypto donations that followed.
According to the bill, the law determines the legal status, classification, regulators, and ownership of virtual assets and decides registration requirements for crypto services providers.
Ukraine’s National Commission also regulates the crypto market on Securities, the Stock Market, and an advisory council tasked with further developing the regulations for the digital asset market in the Eastern European nation.
The council will coordinate efforts of government institutions in identifying solutions for other concerns connected to the regulation of operations in the crypto market and “offer quality expertise and professional evaluation.”
Ukraine’s pro-crypto stance allows exchanges to operate legally and banks to open accounts for crypto companies. It is one of the countries currently utilizing cryptocurrency for economic purposes and has successfully raised funds for its armed forces through digital assets.
“Owing to the support of the world crypto community, we’ve managed to facilitate and expedite quick purchases of everything we needed for our armed forces,” Fedorov acknowledged.
The Ministry of Finance also informed the public about ongoing amendments to the country’s tax to launch the virtual assets market.
Deputy Prime Minister Mikhail Fedorov reiterated at the World Economic Forum that a new tax law would back the Virtual Asset bill for crypto and a CBDC law from the National Bank of Ukraine.
“That will see Ukraine having the best crypto assets jurisdiction in the world … a complex, comprehensive approach to legalizing all digital assets,” he noted. The law is said to go into effect next year.
Russia Deliberates Launching Stablecoin
On the other hand, Russia is said to be making plans with Iran to introduce a gold-backed stablecoin, the “Token of the Persian Gulf.”
According to the daily newspaper Vedomosti, the stablecoin will become a means of payment in foreign trade settlements instead of the dollar, ruble, and Iranian rial. Plans are said to reach the state level after cryptocurrencies have been successfully regulated in Russia.
Russia’s Central Bank had previously voted for a blanket ban on crypto, citing criminal activities funded by the digital currency, such as money laundering and fraud. The proposed legislation was upturned by the Minister of Finance, Ivan Chebeskov, who insisted that the decision would make them fall behind in the high-tech sector.
Currently, the government has endorsed using digital wallets to make cross-border payments, a move targeted at bypassing global finance sanctions.