Ukrainian Tascombank, in partnership with Bitt fintech company, launched a pilot project of an electronic hryvnia based on the Stellar blockchain. The Stellar Development Foundation (SDF) reported this.
Thus, the aim of the initiative is a pilot issue of electronic hryvnia on an open blockchain; with the ability to manage assets for issuers.
As part of the pilot, the e-hryvnia will be tested when paying salaries to employees working on the state service “Diia”. As well as in peer-to-peer and trade payments.
The next step to advance innovation of payment and financial infrastructure
Volodymyr Dubey, Chairman of the Board of Tascombank, said that this cooperation will allow combining the banking system with blockchain-based infrastructure. Moreover, creating an ecosystem that “includes a full range of banking products and operations with electronic currency on the Stellar blockchain.”
In addition, the project is under the control of the National Bank of Ukraine. Also, with the support of the Ministry of Digital Transformation.
“This pilot project will serve as a technological basis for the issuance of electronic money. And it is the next key step to advance innovation of payment and financial infrastructure in Ukraine”. Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine noted.
Memorandum of Understanding and Cooperation
In December 2020, the Ministry of Digital Transformation and the SDF signed a Memorandum of Understanding and Cooperation in the field of virtual assets (VA). In June 2021, SDF joined the Association of Ukrainian Banks.
On June 30, the Verkhovna Rada adopted the bill “On Payment Services”. Which, among other things, regulates the general principles of issuing digital currencies of central banks. Later, the President of Ukraine Vladimir Zelensky signed the law.
Recall that previously in September, the National Bank of Ukraine stated that cryptocurrencies can potentially displace the Ukrainian hryvnia. The regulator recognized that innovations related to VA can improve access to financial services. Therefore, increase competition and promote investment.