Tascombank, one of the oldest banking institutions in Ukraine, has completed a pilot test of a digital currency based on the Stellar network. The bank believes that its electronic money platform represents an economically viable investment in blockchain technology.
Tascombank is conducting tests with a new Ukrainian digital currency
The “electronic hryvnia” was tested by Tascombank of Ukraine in the pilot phase of the project to create a currency with the Stellar network. During the tests, the coin was used in settlements between buyers and sellers, the financial institution said in a report.
Operations with the new digital asset were conducted in accordance with Know Your Customer and existing anti-money laundering procedures, the bank said in a document cited by crypto news outlet Forklog.
Tascombank also highlighted that its research has shown a number of advantages of using blockchain, including transparency at all stages of circulation and between all participants in transactions, increased security and privacy of user data, lower costs and higher capacity.
The electronic money circulation scheme studied during the pilot is an economically viable business model for using blockchain technology, the authors of the report detailed, noting that they “consider the pilot project to be successful and promising in terms of further product development and implementation.”
The bank added that it plans to continue studies on the issuance and circulation of electronic money based on blockchain. One area of future research would be the potential use of such currency in retail cashless payments.
Tascombank also revealed that the National Bank of Ukraine (NBU) believes that the results of its pilot project, which started in late 2021, could be used by commercial and central bank experts to conduct further analysis.
In January 2021, the Kyiv Ministry of Digital Transformation selected the Stellar Development Foundation as a partner in the development of the country’s virtual asset ecosystem, including the NBU central bank’s digital currency (CBDC) infrastructure. In November of last year, the NBU presented the “draft electronic hryvnia concept” to members of the crypto industry, banks and other financial institutions.
Do you think currencies like Tascombank’s e-hryvnia could be introduced alongside government-issued CBDCs? Share your thoughts on the topic in the comments section below.
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