XLM Explodes by 40% As Ukraine Picks Stellar to Develop Its Digital Asset Infrastructure

The popular blockchain project Stellar has signed a Memorandum of Understanding and Cooperation with the Ministry of Digital Transformation of Ukraine to explore and develop virtual currencies and a CBDC. The native cryptocurrency has reacted with a massive surge by almost 40% a day after the announcement.

Stellar And Ukraine To Work On Digital Assets And CBDC

The Stellar Development Foundation (SDF) announced the signing of the contract yesterday. The Memorandum will enable Stellar to work with Ukraine’s Ministry of Digital transformation to “develop a modern virtual asset market infrastructure” and enhance the nation’s status as an “innovative digital country in the financial market in Eastern Europe.”

The statement outlined several core goals of the partnership. Apart from working on virtual assets in Ukraine, those included “provisions of support” to projects related to such currencies, implementation and regulation of stablecoin circulation in the country, and creating 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 in the global financial ecosystem.” – commented 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 major financial trends.”

The first results of the partnership between the European country and the blockchain project are expected to arrive later this month.

XLM Price Skyrockets In Response

Stellar’s native cryptocurrency, dubbed XLM, has reacted in a highly positive manner. The roller-coater in the digital asset market drove the asset down to its intraday bottom below $0.13 yesterday.

However, XLM’s price surged in the hours following the project’s announcement. Earlier today, the token marked a high of nearly $0.18. This increase of roughly 40% resulted in XLM reaching its highest price tag since mid-December 2020.

Additionally, the price movements have also resulted in XLM reclaiming the 12th spot in terms of market capitalization after dropping out of the top 15 a few days prior.