The Ukrainian Ministry of Digital Transformation may be considering using digital currencies to pay staff salaries. The development might be the first possible use case for the county’s central bank digital currency (CBDC).
According to a publication from a local news outlet, TSN, the minister in charge of the Digital Transformation ministry, Mikhail Fedorov, revealed the ministry’s intentions as he spoke about a small and limited use of the CBDC in the initial stage, instead of a large public roll out. Fedorov, who is also the country’s Deputy Prime Minister, said:
“Frankly as one of the first pilots, we have on the table the question of paying salaries to employees of the Ministry of Digital Transformation in electronic hryvnia.”
In addition to his point about starting off small, Fedorov said that it is important to properly test the electronic hryvnia to prevent malicious or inappropriate use. The minister believes that using the CBDC for staff salaries is a feasible test option.
Ukraine has been developing its own CBDC for years now. The country is on a growing list of nations working hard at digital versions of their respective fiat currencies.
As of October 202, China had processed 1,1 billion Yuan worth of transactions while testing its CBDC.