The XLM cryptocurrency soared 40% in just one day after Stellar announced a partnership with Ukraine to develop an infrastructure of digital assets and a Central Bank Digital Currency (CBDC).
The popular blockchain project Stellar signed a Memorandum of Understanding and Cooperation with the Ukrainian Ministry of Digital Transformation to explore and develop digital currencies and a CBDC. The native cryptocurrency reacted with a large increase of almost 40% per day after the announcement.
Stellar and Ukraine
The Stellar Development Foundation (SDF) announced the signing of the contract yesterday (4/01). The Memorandum will allow Stellar to work with the Ukrainian Ministry of Digital Transformation to “develop a modern virtual asset market infrastructure” and improve the nation's status as an “innovative digital country in the Eastern European financial market”.
The statement outlined several central objectives of the partnership. In addition to working with virtual assets in Ukraine, the document includes "support provisions" for projects related to these currencies, implementation and regulation of stable currency circulation in the country and creation of a central bank digital currency (CBDC).
The Ministry of Digital Transformation is working on creating the legal environment for the development of virtual assets in Ukraine.
We believe that our cooperation with the Stellar Development Foundation will contribute to the development of the virtual asset industry and its integration into the global financial ecosystem. ” – commented the Deputy Minister of Digital Transformation, Oleksandr Bornyakov.
He added that Ukraine has also decided to play an active role in establishing a CBDC, as other countries have already taken the lead. This shows the world that "Ukraine is moving towards one of the main financial trends".
The first results of the partnership between the European country and the blockchain project should arrive later this month.
XLM Price soars in response
Stellar's native cryptocurrency reacted in a highly positive way. The price of cryptocurrency rose in the hours after the project was announced. Earlier today, the token marked a rise to nearly $ 0.18. This increase of approximately 40% resulted in XLM reaching its highest price since mid-December 2020.
Stellar price over time (daily candles). Source: TradingView. In addition, price movements also resulted in XLM regaining 12th place in terms of market capitalization, after leaving the top 15 a few days earlier.
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