A Ukrainian commercial bank, TASCOMBANK, has successfully completed a pilot study on the Stellar Network. The findings from the pilot study have shown the potential utility of the technology for businesses, governments, and citizens, and set the foundation for greater adoption of virtual assets in Ukraine.
Ukrainian Commercial Bank Completes Pilot Study On Stellar Network
TASCOMBANK, a central Ukrainian commercial bank and one of its oldest banking institutions, reported that it successfully completed a pilot study on the Stellar Network. As a result, the bank is now advocating for the integration of blockchain technology in Ukraine’s payments network. During the project’s pilot phase aimed at creating a currency on the Stellar network, TASCOMBANK in Ukraine tested a version of an “electronic hryvnia”.
According to Stellar Network’s press release the comprehensive study has outlined the numerous benefits of utilizing blockchain technology for the issuance and distribution of digital currency. These advantages include increased transparency, improved accountability, enhanced security, reduced transaction fees, and increased processing speed.
The pilot project began in 2021, with the goal of evaluating the feasibility of issuing a digital currency on an open blockchain platform that allows issuers to maintain control over assets. The testing focused on various aspects of electronic money such as peer-to-peer transactions, merchant payments, and payroll.
Ukraine Advocating Adoption Of Blockchain Technology
Oleksii Shaban, Deputy Governor of the National Bank of Ukraine, commented on the pilot results stating that there are still many hypotheses to study and test within the framework of pilots. However, the pilot results are considered important material for the analysis and use in the work of commercial and Central banks specialists. He also congratulated TASCOMBANK for their desire for innovation and allocation of resources for research that may become the basis for the further development of the payment landscape of Ukraine, despite the ongoing war.
Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, stated that Stellar is designed for asset issuance. She said that the findings of this pilot demonstrate the potential utility of the technology for businesses, governments, and citizens. Dixon also confirmed that with open-source technology, innovators like TASCOMBANK, with the support of the MDT (Ministry of Digital Transformation), can configure virtual assets that are secure, interoperable, and meet regulatory standards. She believes that this pilot proves that real-world solutions can be built on Stellar, and sets the foundation for greater adoption of virtual assets in Ukraine.
The National Bank of Ukraine has been researching the possibility of creating a central bank digital currency (CBDC) since 2017. Ukraine has established itself as a nation that is open to cryptocurrencies and is also actively promoting the use of digital payments. As a result of this, some pharmacies in Ukraine now accept payments made in cryptocurrencies through Binance Pay.
At the time of writing this article, the Lumen (XLM), which is the native cryptocurrency to the Stellar network, is being traded at $0.0869. This represents a 10% increase in value over the past seven days.