Ukraine’s Tascombank has tested an “electronic hryvnia” as part of an effort to develop a currency using the Stellar network. The financial organisation revealed in a study that the coin was utilised throughout the testing in transactions between buyers and sellers.
The bank noted in the paper, which was cited by the cryptocurrency news outlet Forklog, that transactions involving the new digital asset were completed in line with the laws currently in place on know-your-customer and anti-money laundering.
Tascombank also emphasised that its analysis revealed a number of advantages of employing blockchain, including openness between all parties involved in the transactions and at all stages of circulation, increased security and confidentiality for user data, low costs, and high capacity.
The authors of the report elaborated, stating that they “consider the pilot project successful and promising in terms of further product development and implementation.” The electronic money circulation scheme studied during the pilot is an economically viable business model for using blockchain technology.
The bank added that it planned to continue investigating the development and application of blockchain-based electronic currency. One of the subjects of its future research will be the potential use of such currency in retail non-cash payments.
Tascombank also revealed that the National Bank of Ukraine (NBU) believes experts at commercial and central banks can use the results of their pilot, which began at the end of 2021, to conduct additional research.
In January 2021, the Ministry of Digital Transformation in Kyiv chose the Stellar Development Foundation as a partner for the development of the country’s ecosystem for virtual assets, including the construction of the NBU’s central bank digital currency (CBDC). In November of last year, the NBU delivered a “draught e-hryvnia concept” to leaders of the cryptocurrency industry, banks, and other financial institutions.
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