Tascombank, one of the oldest banking institutions in Ukraine, has completed the pilot test of a digital currency based on the Stellar network. The bank believes that its electronic money platform represents an economically viable implementation of blockchain technology.
Tascombank tests new Ukrainian digital currency
Ukraine’s Tascombank tested an “electronic hryvnia” during the pilot phase of a project to create a currency using the Stellar network. During the trials, the currency was used in deals between buyers and sellers, the financial institution announced in a report.
Operations with the new digital asset were carried out in accordance with current know-your-customer and anti-money-laundering procedures, the bank noted in the document, quoted by crypto news outlet Forklog.
Tascombank also emphasized that its research demonstrated a number of advantages of employing blockchain, including transparency at all stages of circulation and between all transaction participants, increased security and confidentiality for user data, low costs, and high capacity.
The e-money circulation scheme studied during the pilot is an economically viable business model for the use of blockchain technology, the report authors elaborated, stating that they “consider the pilot project to be successful and promising in terms of further development and implementation.” of products”.
The bank added that it plans to continue its studies on the issuance and circulation of electronic money based on blockchain. One of the areas that his future research will cover will be the potential use of said currency in non-cash retail payments.
Tascombank also revealed that the National Bank of Ukraine (NBU) believes that the results of its pilot program, which was launched at the end of 2021, can be used by experts from commercial and central banks for further analysis.
In January 2021, the Kyiv Ministry of Digital Transformation selected Stellar Development Foundation as a partner in developing the country’s virtual asset ecosystem, including infrastructure for the NBU central bank digital currency (CBDC). In November last year, the NBU presented a “draft e-hryvnia concept” to members of the crypto industry, banks and other financial institutions.
Do you think currencies like Tascombank’s e-hryvnia can be introduced in parallel with government-issued CBDCs? Share your thoughts on the subject in the comments section below.
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