Key Takeaways
- Ukraine considering using CBDC to pay staff salary
- The Deputy Prime minister stated this development
- More nations exploring the creation of CBDCs
This development was revealed by local media outlet TSN which stated that the Ministry of Digital Transformation could pay staff salaries in the digital currency. The report quoted statements from Head of the ministry of Digital Transformation Mikhail Fedorov when quizzed on digital currency.
Fedorov, who doubles as the Deputy Prime Minister, stated his intentions to test the CBDC with social payments instead of a sandbox system. He added that paying staff salary with the e-hryvnia represented a good way to test the national currency.
Ukraine has been working on a CBDC in recent years, with the central bank collaborating with Stellar to extensively research digital assets and CBDCs. The digital hryvnia is expected to foster novel financial payment systems and reduce the country’s dependency on cash.
Several countries have tested their CBDCs by using digital currency to pay staff salaries. A key example is China which has made significant progress with its digital Yuan. The Asian nation used the CBDC to pay workers earlier in June as part of a testing phase.
Central Bank Digital Currencies have become popular globally as central banks look to catch up with existing cryptocurrencies. The Bahamas was the first country to debut its digital currency, ‘’ the Sand Dollar,’’ and other countries are exploring or developing their national digital currency.
Despite this growing trend, cryptocurrencies like Bitcoin and Ethereum continue to grow in popularity. This is because many believe that the CBDCs are an extension of existing fiat currencies that are prone to inflation and devaluation.
It will be interesting to see how the CBDC system will be implemented to the traditional finance systems.
What are your thoughts on Ukraine staff receiving their salary in digital currencies?
