Top Cryptocurrency News: Deputy Minister Of Digital Transformation Says Ukraine Should Launch A CBDC
Ukraine's Deputy Minister of Digital Transformation, Alex Bornyakov, argues in a four-tweet thread on Friday that developing a Central Bank Digital Currency would benefit Ukraine tremendously.
“I feel that establishing Ukraine's national currency on the blockchain might be beneficial,” Bornyakov says at the start of his thread that “CBDC, as a new type of programmable monetary instrument, can be a significant step toward digitization of the state financial system.”
According to Bornyakov, a blockchain-based digital hryvnia can cut transaction costs and speed. Furthermore, he claims that a CBDC might improve Ukraine's tax collection by exposing tax loopholes.
Bornyakov also mentions the following advantages:
-
Enhanced transparency of public documents and transactions.
-
Ease of donation to rebuilding efforts, with greater openness about how these donations are handled.
-
A prospective economic strategic advantage.
Bornyakov has been one of the most powerful voices praising the significance of cryptocurrencies and blockchain technology in Ukraine's war effort. Bornyakov, as previously reported by CoinGabbar, stated in July that the crypto industry is here to stay and that digital assets remain essential to the country's military strategy.
Notably, unlike other methods of funding, Ukraine may accept cryptocurrency donations in minutes. As a result, crypto donations were critical in supplying the necessary equipment and comforts in the early days of the country's struggle against the Russian invasion.
While the establishment of a CBDC might accelerate Ukraine's blockchain adoption, it is also likely to raise privacy discussions and even pushback from privacy advocates. It is important to note that despite the potential advantages of CBDCs, privacy activists oppose the concept of the central bank being able to monitor or, worse, regulate how residents spend their money.
Notably, other countries, including the United States, are already investigating the possibility of creating a CBDC, while China is currently in the advanced phases of testing.
