During the early stages of Russia’s military invasion, donations through cryptocurrency were “critically helpful to Ukraine,” the country’s Vice Prime Minister and Minister of Digital Transformation Mykhailo Fedorov told journalists in Davos, Switzerland.
During a press conference at the sidelines of the World Economic Forum (WEF), Fedorov explained that with currency restrictions imposed with the martial law, Ukraine was nevertheless able to quickly purchase everything it needed for its armed forces, thanks to the support of the global crypto community.
The high-ranking representative also emphasized that the government is developing the necessary legal framework with a comprehensive approach to the full legalization of cryptocurrencies. A law “On Virtual Assets” was passed by the Verkhovna Rada, the Ukrainian parliament, in mid-February.
For this legislation to come into full force, amendments to the Tax Code are also needed. Once they are adopted, Ukraine will have the best crypto jurisdiction in the world, Fedorov insisted, further pointing out:
Ukraine is a candidate for EU membership. We have to harmonize with European law, taking into account the practices and recommendations of the IMF and the World Bank.
Minister Wants to Be Paid in Ukraine’s Digital Currency, E-hryvnia
The Ukrainian official also marked the progress towards issuing a Ukrainian central bank digital currency (CBDC). “Two weeks ago, I saw a pilot of electronic hryvnia,” he said, referring to the project which is being realized in cooperation with Stellar and a private bank.
The National Bank of Ukraine (NBU) intends to propose in 2024 legislation dedicated to the introduction of the CBDC, Mykhailo Fedorov revealed. “I plan to become its first test user and receive my salary in e-hryvnia,” he stated.
Despite the raging conflict with Russia, the authorities in Kyiv have a “very ambitious plan” to make Ukraine the most digitalized country in the next two years. “Digitalization is going to be the foundation for rebuilding. We are doing these reforms during the war,” Fedorov explained.
The vice prime minister also highlighted the support his nation is getting on the road to digitalization, in terms of resources and experience from G7 countries like the United States and Japan. He further called for the continuation of tech sanctions against Russia, which he said is still buying components using virtual assets and intermediaries.
Do you think Ukraine will establish itself as one of the most crypto-friendly destinations after the war? Share your expectations in the comments section below.