Ukraine will be 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 support from the crypto community for the war-torn country.
Crypto Donations Have Been Critically Helpful to Ukraine Amid Invasion, Fedorov Says
Donations through cryptocurrencies “have been critically helpful to Ukraine” during the early stages of Russia’s military invasion, Mykhailo Fedorov, the country’s Deputy Prime Minister and Minister of Digital Transformation, toldreporters in Davos, Switzerland.
At a press conference on the sidelines of the World Economic Forum (WEF), Fedorov explained that with the currency restrictions imposed by martial law, Ukraine was nevertheless able to quickly purchase everything it needed for its military, 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: in mid-February, a law “on virtual assets” was passed by the Verkhovna Rada, Ukraine’s parliament.
For this law to be fully implemented, amendments to the Tax Code are also needed. If they are adopted, Fedorov argued, Ukraine will have the best crypto jurisdiction in the world, and further noted that.
Ukraine is a candidate country for EU membership. We must take into account the practices and recommendations of the IMF and the World Bank and harmonize them with European legislation.
The Minister wants to be paid in Ukraine’s digital currency, E-hryvnia
. Ukrainian officials have also marked progress toward the issuance of the Central Bank of Ukraine Digital Currency (CBDC). Two weeks ago I saw the pilot of the electronic hryvnia,” he said, referring to the project being realized in cooperation with Stella and private banks.
Mykhailo Fedorov revealed that the National Bank of Ukraine (NBU) intends to submit a bill dedicated to the introduction of CBDC in 2024.” I will be its first test user and will receive my salary in e-hryvnia,” he said.
Despite the escalating conflict with Russia, authorities in Kiev have a “very ambitious plan” to make Ukraine the most digitized country in the next two years.” “Digitization is the foundation for rebuilding. We are making these reforms during the war,” Fedorov explained.
The deputy PM also emphasized that his country is on the path to digitalization in the form of resources and experience from G7 countries such as the United States and Japan. He also called for continued technical sanctions against Russia for using virtual assets and intermediaries to purchase components.
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