Ukrainian Ministry is considering pilot project on digital currency for staff salaries

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Mikhail Fedorov, Ukraine’s Deputy Prime Minister and head of the country’s Ministry of Digital Transformation, has revealed a possible early use case for the country’s proposed central bank digital currency (CBDC).

In a recent interview published by the Ukrainian media company TSN, the minister revealed considerations within the ministry to test the CBDC by using the electronic currency in paying employees’ salaries:

“To be honest, we were one of the first pilots to have the question of paying salaries to employees of the Ministry of Digital Transformation in electronic hryvnia on the table.”

Fedorov made these remarks while advocating that the initial introduction of the e-hryvnia focus on a small, controlled use case rather than being used for social payments. According to Fedorov, there is a need to test the CBDC to prevent improper use, hence his request for employee salary payments as a viable pilot for the national digital currency.

As Cointelegraph previously reported, following the passage of a new law on payment services by the country’s legislature, the Ukrainian central bank received approval to issue a digital currency.

The National Bank of Ukraine has been working on creating and issuing a digital currency for the past few years. The Department of Digital Transformation is also heavily involved in the CBDC space as it has partnered with the Stellar Development Foundation to develop a common strategy for CBDCs and digital assets in general.

Related: New law in Ukraine to allow payments in cryptocurrency, official says

Using CBDCs to pay government employees is often one of the pilot implementation strategies for national digital currency projects.

In fact, among the few sovereign digital currencies already in circulation, several projects have chosen to pay government employees in the CBDC.

China, one of the leading nations in the CBDC arena, introduced a blockchain-based system for digital yuan salary payments back in June.