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Bitfury Inks ‘Biggest Blockchain Government Deal Ever’ with Ukraine

Last Updated March 4, 2021 4:55 PM
Samburaj Das
Last Updated March 4, 2021 4:55 PM

The Bitfury Group, a major bitcoin- and blockchain-company, has announced a deal with the government of Ukraine that will involve putting all of the government’s electronic data onto a blockchain platform.

In an interview with Reuters , Bitfury CEO Valery Vavilov confirmed a memorandum of understanding between Ukraine and the firm, one that will lead to a sweeping new ecosystem for state projects from every level of the Ukrainian government.

“A secure government system built on the blockchain can secure billions of dollars in assets and make a significant social and economic impact globally by addressing the need for transparency and accountability,” Vavilov stated.

The deal will reportedly begin with a pilot project that could look into providing blockchain records for areas like public services, social security, public health, energy and state registers.

Vavilov adds that he is unable to determine the cost estimates for a project that involves putting all of the government’s electronic data on a blockchain. However, he claimed that the scale of the project meant that the endeavor is the ‘biggest government blockchain deal ever’, so far.

Oleksandr Dyzhenko, head of Ukraine’s State Agency for eGovernance underlined the significance of the deal by claiming that the agreement will usher in an “entirely new ecosystem for state projects based on blockchain technology” in the country.

Notably, the official added:

Our aim is clear and ambitious – we want to make Ukraine one of the world’s leading blockchain nations.

In similar endeavors elsewhere, Georgia, Sweden, Estonia and the Dutch city of Rotterdam are among a number of examples that have undertaken state projects powered by blockchain technology.

The Bitfury Group is perhaps most-known for its stature as a bitcoin mining company but is lately scaling into providing blockchain services to governments and industries alike.

The partnership with Ukraine is the second governmental deal the firm has gotten into, after expanding a previous project to help the Republic of Georgia to secure land titles using the bitcoin blockchain. In 2015, Bitfury invested $100 million in a new bitcoin mining facility in Tbilisi, Georgia’s capital city.

The Bitfury Group also entered an agreement with ‘big four’ accounting giant Ernst & Young to provide blockchain software services to EY and its clients.

Featured image from Shutterstock.