Alex Alexandrov, the CEO and founder of Coinpayments and Velas blockchain, was recently fortunate enough to meet with Ukrainian president Volodymyr Zelensky to discuss the legalization of cryptocurrency in the country. Zelensky, who rose to fame as an actor, director, and screenwriter, has been working hard to bring about peace in the country following ongoing protests by far-right nationalist groups. For the past five years, the eastern region of Ukraine has been embroiled in a conflict with far-right separatists supported by Russia.
Now, Zelensky hopes to legalize cryptocurrencies and utilize blockchain technology to drive economic growth and facilitate fair and transparent elections. As a specialist with almost a decade worth of experience in the field, Alexandrov was on hand to provide his insight and professional opinion.
“Technology is now going to evolve and improve transparency. So blockchain can bring trustworthy systems to the economy, which will help fight and control corruption,” he explains.
Many industries around the world are already implementing blockchain technology into their daily operations with promising results. These small scale successes have the potential to be scaled up to government-level institutions and provide much-needed solutions, especially within developing nations.
The recent hyperinflation and resulting economic collapse in Venezuela provide a perfect example of how a blockchain-based economic system can help support citizens during political upheaval. The immutable and incorruptible nature of blockchain technology helps to protect the most vulnerable of citizens in these situations against abuses by governments or financial institutions.
Legal, taxable framework
In Ukraine, cryptocurrencies currently have no official status. While they are not banned, they have not been given any regulatory or legal framework in the country. Zelensky hopes to change this by legalizing cryptocurrencies and moving the state registries onto a blockchain-based system. Ukraine’s young Deputy Prime Minister for Digital Information, 28-year old Mikhail Fedorov, hopes to use blockchain technology to revolutionize state services and provide an easy-to-use online system like that of Uber or Airbnb.
In addition, legalizing cryptocurrencies will give the green light for existing crypto enthusiasts to declare their investments and provide an avenue for paying taxes. The country hopes the provision of a regulated system for cryptocurrency activities – like mining and trading – will provide a welcome boost to the economy.
Zelensky also sees the benefits that blockchain provides in fighting corruption. In contrast to Russia’s struggling efforts to control cryptocurrency-related crime within its own state-run organizations, Zelensky believes legalization will reduce the likelihood of incidents like bribes and corruption.
“Zelensky wants to make Ukraine an example for world countries in how to implement blockchain, how to use cryptocurrencies, and how to create transparency in all economic facets to eliminate corruption,” said Alexandrov
As one of the most advanced and scalable blockchain systems currently available, Velas is perfectly positioned to support such implementations. Lightening-fast transaction speeds and a continuously evolving network environment make it ideal for situations that face constant change and uncertainty. Alexandrov and the Velas team are excited to support Zelensky and the Ukranian government as they enter this exciting new time of digital revolution.