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Stellar Development Foundation, the non-profit organization behind Stellar Lumens (XLM)
Foundation), Stellar, the world’s 14th largest cryptocurrency, has been selected by European countries as their upcoming state-backed digital currency. Ukraine will deploy its upcoming central bank digital currency (CBDC) on the Stellar blockchain, according to a press conference on Monday. The project will be funded by the country’s Ministry of Digital Transformation and the Stellar Development Foundation.
Development Foundation) supervision and implementation.

According to a statement issued on January 4, the above-mentioned projects will include assisting the Central Bank of Ukraine in promoting the development of CBDC and helping Ukraine build infrastructure for a modern virtual asset market, “enhancing Ukraine’s position as an innovative digital country in the Eastern European financial market.” Oleksandr, Deputy Minister of Digital Transformation
Bornyakov emphasized,

Promoting the development of a national digital currency does not mean Stellar will develop a Ukrainian CBDC. On the contrary, the cooperation between the two parties is expected to "make high-quality decisions for the development of Ukraine's virtual asset ecosystem."

Also, Oleksandr
Bornyakov said that Ukraine will also refer to and integrate the practical plans of Switzerland, the United Kingdom, Malta, Liechtenstein and the United States in terms of cryptocurrency and blockchain supervision. He elaborated:

Cryptocurrency companies, blockchain startups, and financial institutions are all seeking a legally protected business environment. Ukraine’s Ministry of Digital Transformation is also working hard to establish a legal framework to provide relevant industries with a transparent and stable regulatory environment.

He continued that the Central Bank of Ukraine has been studying CBDC since 2017. Like many countries, Ukraine is currently exploring the utility of CBDC, as well as CBDC
Potential impacts on everything from monetary policy to financial stability and user adoption.

Last September, Chainanalysis ranked Ukraine as the country with the highest cryptocurrency adoption rate in the world. 2019 Oleksandr Bornyakov
It has been made clear that although Ukraine does not ban the use of cryptocurrencies, if measures can be taken to establish the legal status of cryptocurrencies, Ukraine and its government will benefit through relevant taxes.

He said frankly that "cryptocurrency industry players should step out of the gray area and start paying taxes." In addition to current miners, he believes that Ukraine can also "obtain tax revenue through cryptocurrency traders."