Ukraine will become the world’s best jurisdiction for crypto-assets, the minister overseeing the country’s digital transformation has promised. Speaking to the media at the World Economic Forum in Davos, Mykhailo Fedorov praised the crypto community’s support for his embattled nation.
Cryptocurrency donations have been invaluable to Ukraine during the invasion, according to Fedorov.
At the beginning of the Russian military invasion, crypto-currency donations were “a great help to Ukraine“, said Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov. told to reporters in Davos, Switzerland.
Speaking at a press conference on the sidelines of the World Economic Forum (WEF), Mykhailo Fedorov explained that with the monetary restrictions imposed with 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 stressed that the government is developing the necessary legal framework with a comprehensive approach to the full legalization of crypto-currencies. A law “On virtual assets” was adopted by the Verkhovna Rada, the Ukrainian parliament, in mid-February.
For this legislation to come into full effect, changes to the tax code are also needed. Once they are adopted, Ukraine will have the best cryptographic jurisdiction in the world, insisted Mykhailo Fedorov, further emphasizing:
Ukraine is a candidate for EU membership. We must harmonize with European law, taking into account the practices and recommendations of the IMF and the World Bank.
A minister wants to be paid in E-hryvnia, the digital currency of Ukraine.
The Ukrainian official also highlighted progress toward issuing a digital currency from the Ukrainian Central Bank (CBDC). “Two weeks ago, I saw an electronic hryvnia pilot“, he said, referring to the project, which is carried out 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 CBDC, revealed Mykhailo Fedorov. “I plan to become its first test user and receive my salary in e-hryvnia“, he said.
Despite the raging conflict with Russia, the Kiev authorities have a “very ambitious plan“to make Ukraine the most digitalized country in the next two years. “Digitization is going to be the basis for reconstruction. We make these reforms during the war“, explained Mr. Fedorov.
The deputy prime minister also highlighted the support his nation is receiving on the path to digitization, in terms of resources and experience from G7 countries like the United States and Japan. He also called for the maintenance of technological sanctions against Russia, which he said continues to buy components using virtual assets and intermediaries.