Vice Prime Minister of Ukraine Says He Wants To Make The Country A World Leading Jurisdiction For Cryptocurrency

Vice Prime Minister of Ukraine, Mikhail Fedorov, has said he wants to make the country a world-leading jurisdiction for cryptocurrency.

JUST IN: 🇺🇦 Vice Prime Minister of Ukraine says he wants to make the country a world leading jurisdiction for #cryptocurrency.

— Watcher.Guru (@WatcherGuru) January 17, 2023

The declaration came as Fedorov spoke at the World Economic Forum in Davos, Switzerland. During the event, Fedorov also took advantage of the opportunity to discuss Ukraine’s central bank digital currency (CBDC), the hryvnia, and legislation expected to “make the country the world’s leading jurisdiction for cryptocurrency assets.

The Vice Prime Minister’s remarks follow the realization of the idea that Ukraine successfully used cryptocurrencies to raise funds for its military forces.

Ukraine Discusses CBDCs and Cryptocurrency Legislation

Many leaders gathered at the World Economic Forum in Davos, Switzerland. They discussed a wide range of topics surrounding the digital asset sector. The Ukrainian official used this venue to announce his desire to make his country a world leader in crypto jurisdiction.

Noteworthy, the country signed crypto legislation in 2022, shortly after Russia invaded Ukraine and the Russo-Ukrainian war began. The Vice PM said the recently structured tax laws would support the signed crypto law from as early as 2024. A CBDC from the National Bank of Ukraine would aid the legislation.

He went on to discuss “A complex, comprehensive approach to the legalization of all digital assets.” He explained the country’s impending CBDC, noting his plans to take a personal initiative in testing it beginning in 2024.

Underscoring his commitment to the plan, Fedorov said:

“I plan on becoming the first test user of electronic hryvnia, and I plan on receiving my salary in e-hryvnia.”

The Vice Prime Minister praised the country’s innovative cryptocurrency fundraising, where the country was able to raise almost $178 million. In this regard, Fedorov said:

“Owing to the support of the world of the crypto community, we have facilitated and expedited quick purchases. These catered for everything needed for our armed forces.”

IBM Executive Says CBDCs Are The Future Of Money

During the same event, IBM executive Shyam Nagarajan expressed his belief that CBDCs are the future of money, adding that issuers must think about a hybrid model where both permission and permissionless currency are featured. According to Nagarajan, Central Bank Digital Currencies are reaching their potential as the future of finance depends on such a dual structure.

The IBM executive also noted that CBDC projects are in testing stages in every part of the world, with stablecoins still passing as the dominant digital asset. He explains where CBDCs could stand, saying:

“CBDCs are replacing the current digital currency system, and in a way, there is control over Central Bank Digital Currencies.”

In his opinion, this is the ideal position where a unique mix of permission and permissionless is necessary. Nevertheless, he acknowledged that stablecoins would remain a stopgap until CBDCs are available in the market.

Deloitte global tax leader Rob Massey underscored Nagarajan’s sentiment in a different statement, saying that having programmable money through smart contracts plays has a limiting effect against friction and would “help large-scale enterprises enhance their level of transparency and real-time payment systems.”

Further stating, Massey confirmed that this was precisely where the world was headed before making a warm conclusion that only some CBDC, smart contract, or stablecoin are created the same.

CBDC Gaining Popularity

Central Bank Digital Currencies (CBDCs) are now a popular term in the crypto playing field. They represent the attempts made by different nations to adopt digital assets. The idea has already been tested by more than 20 countries in the world today, based on data revealed by Atlantic Council.