Tascombank, one of the oldest banking institutions in Ukraine, has completed a pilot test of digital currency based on the Stellar network. The bank believes that its e-money platform represents an economically viable implementation of blockchain technology.
Tascombank Tests Ukraine’s New Digital Currency
Ukraine’s Tascombank has tested its “electronic hryvnia” in the pilot phase of a project to create a currency on the Stellar network. During the test period, the coin was used for payments between buyers and sellers, the financial institution said in areport.
Operations on the new digital asset were carried out in accordance with current customer recognition and anti-money laundering procedures, the bank noted in a document cited by crypto news outlet Forklog.
Tascombank also stressed that its study demonstrated the many advantages of adopting blockchain, including transparency at all stages of distribution and among all participants in transactions, improved security and confidentiality for user data, lower costs, and higher capacity.
The pilot studied e-money distribution scheme is an economically viable business model for using blockchain technology, the report’s authors elaborated, “We consider the pilot project successful and promising in terms of further product development and implementation.” They state.
They added that the bank plans to continue its research on blockchain-based e-money issuance and distribution. One of the areas its future research seeks to cover is the possible use of such currency in retail non-cash payments.
Tascombank also revealed that it believes that the results of the pilot launched by the National Bank of Ukraine (NBU) at the end of 2021 can be used by commercial banks and central bank experts for further analysis.
In January 2021, Kiev’s Ministry of Digital Transformation chose Stella Development Foundation as its partner in the development of the country’s virtual asset ecosystem, including the NBU’s Central Bank Digital Currency (CBDC) infrastructure. Last November, the NBU presented a draft e-hryvnia concept to members of the crypto industry, banks, and other financial institutions.
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