Tascombank, the oldest banking institution in Ukraine, has completed the pilot test for a digital cryptocurrency based on the Stellar network. The bank believes that its e-money platform is a viable implementation for blockchain technology.
Tascombank Refines New Ukrainian Digital Currency
Tascombank recently conducted a trial of its new “electronic hryvnia” using the Stellar network. The project was launched to create a new currency, and during the pilot phase, the currency was used in transactions between buyers and sellers.
The bank noted in the document that the operations were carried out in accordance with the current know-your-customer and anti-money-laundering procedures, as reported by the crypto news outlet Forklog.
Tascombank also highlighted that blockchain research has shown many benefits, including improved transparency of all stages and participants in transactions, increased security and confidentiality of user data, low cost and high capacity.
The pilot e-money circulation scheme was an economically viable model for using blockchain technology, according to the report authors. The bank believes that they have “considered the pilot project to be successful and promising in terms of further development and implementation.”
Tascombank will continue its research on blockchain-based electronic money circulation and issuance. Future research will include the possible use of said currency for non-cash retail payments.
It was also noted that the National Bank of Ukraine (NBU) can use the results of the pilot program to further analyze said currency. In January 2021, the Kyiv Ministry of Digital Transformation selected the Stellar Development Foundation as a partner to develop the country’s digital asset ecosystem, including its infrastructure and the NBU’s central banking digital currency (CBDC). In November last year, the NBU presented a “draft e-hryvnia concept” to members of the crypto industry and banks, as well as other financial institutions.
What do you think of Tascombank’s e-hryvnia and how it can be used in conjunction with CBDCs issued by the government? Share your thoughts in the comments below.
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