Tascombank Tested Stellar-based Electronic Money Platform With Blockchain Optimism

Key Points:

• A digital currency built on the Stellar network has successfully completed its trial testing at Tascombank.
• The bank considers its electronic payment system to be a commercially feasible application of blockchain technology.

One of the oldest banks in Ukraine, Tascombank, has tested an “electronic hryvnia” as part of a proposal to develop a currency using the Stellar network.

The financial organization revealed in a report that the coin was utilized throughout the testing in transactions between buyers and sellers.

The bank considers its electronic payment system to be a commercially feasible application of blockchain technology.

The bank noted in the paper that operations with the new digital asset were completed in compliance with the current know-your-customer and anti-money laundering policies.

Additionally, Tascombank underlined that its research showed a number of benefits of using blockchain, including transparency between all participants in the transactions and at all stages of circulation, improved security and confidentiality for user data, low costs, and high capacity.

The bank also stated that it intended to keep researching the creation and use of electronic money based on blockchains. The potential application of such currency in retail non-cash payments will be one of the topics covered by its future research.

An economically sound business model for utilizing blockchain technology is the electronic money circulation system that was investigated during the pilot.

Tascombank also disclosed that the National Bank of Ukraine (NBU) thinks experts at commercial and central banks can use the outcomes of their pilot, which was launched at the end of 2021, to conduct more analysis.

The project is implemented under the supervision of the NBU and with the support of the Ministry of Digital Transformation, according to a statement in December 2021. Deputy Minister of Digital Transformation of Ukraine, Oleksandr Bornyakov, noted:

“This pilot project will serve as a technological basis for the application of electronic money, and is the next key step to advance innovation of payment and financial infrastructure in Ukraine.”

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