- The currency was used in trials to settle payments between buyers and sellers.
- Tascombank also highlighted its report suggesting the many benefits of using blockchain.
During the experimental phase of a proposal to create a currency using the Stellar network. Ukraine’s Tascombank attempted to pilot test an “electronic hryvnia.” According to a report released by the bank. The currency was used in trials to settle payments between buyers and sellers.
To clarify, the bank said in the paper that all transactions involving the new digital currency were conducted in compliance with the bank’s existing know-your-customer and anti-money laundering processes.
Leveraging Blockchain Tech
Tascombank also highlighted its report suggesting the many benefits of using blockchain. Such as greater security and confidentiality for user data, cheap costs, and high capacity. As well as transparency at all levels of circulation and between all participants in the transactions.
According to the report’s authors they, “consider the pilot project successful and promising in terms of further product development and implementation.” Moreover, the electronic money circulation scheme investigated during the pilot is an economically feasible business model for leveraging blockchain technology.
The financial institution also said that it will keep researching the creation and circulation of blockchain-based digital currency. Possible applications of such currency in non-cash retail transactions will be explored in future studies.
It was also reported by Tascombank that the National Bank of Ukraine (NBU) thinks the findings of its pilot, which was started at the end of 2021, may be utilized by specialists at commercial and central banks to perform additional research.
In January of 2021, the Ukrainian government’s Ministry of Digital Transformation said that it will be collaborating with the Stellar Development Foundation to build up the country’s virtual assets ecosystem, which would include support mechanisms for the National Bank of Ukraine’s digital currency (CBDC).