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December 14, 2021

Bank in Ukraine Using Stellar to Launch Project

A bank called Tascombank is commencing a pilot project. Tascombank is one of Ukraine’s longest-running banks in the commercial sector. The project that they will be piloting is on Stellar. The project is for the country’s national fiat currency called the Hryvnia.

About the Launch

On Tuesday, the project’s owners commenced the start of the project. It will be a private electronic hryvnia pilot. The commercial bank is doing this project in conjunction with one private sector company called Bitt. Bitt is an enterprise in the fintech space. The National Bank of Ukraine is overseeing the project’s pilot phase. The project is also added by the country’s Ministry of Digital Transformation (MDT).

The Deputy Minister of the Ministry of Digital Transformation, Oleksandr Bornyakov stated that the initial phase of the project would offer a technological foothold for the issuance of digital currency. He also said it would give the next steps to further innovation of payment and financial infrastructure in the country.

The chief executive officer of SDF, Denelle Dixon informed the media that the initial phase of the project had already begun. Dixon stated that this initial phase included programmable payroll for employees of the state at Diia. Diia is a national information technology solution provider. The Ministry of the Digital Transformation also sustains this organization.

About Regulation

When commenting on regulation, Dixon stated that holders would utilize the regulated electronic money ncy or e-money on blockchain technology. These advancements, according to Dixon, are under the country’s presently applied e-money rules and regulations.

The goal of the Project

The intention of this project is to assess the issuance of electronic currency on the open blockchain ecosystem. The project tasks the commercial bank, Tascombank, for establishing and assessing the electronic hryvnia on Stellar. The intention is to thereafter release it on Bitts transaction network. Bitts transaction network is known as the DCMS (Digital Currency Management System).

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Distribution of Responsibilities

According to the chief executive officer of Bitt, the Digital Currency Management System will include a number of capabilities. These capabilities include the ability for the platform to mint, issue, store, redeem and distribute the electronic hryvnia. Dixon stated that SDF would orchestrate the commercial bank’s configuration for their asset control requirements. At the same time, it will maintain the interoperability and flexibility of an open ledger.

The Ukraine Governments Previous Efforts

The government of Ukraine has attempted to explore Stellar for implementation of Stellar for e-money. Back in January of this year, the Ministry of Digital Transformation teamed up with the SDF. Their collaboration was for the purpose of creating digital assets and infrastructure-related strategy or the bank’s digital currency. Dixon added that they would not stop giving input and direction to the Ministry of Digital Transformation on their strategic efforts. However, Dixon did include that the hryvnia is an independent workstream.

About Ukraine

Ukraine is a European country that is located on the eastern side of Europe. It happens to be the largest after Russia. The capital city is Kyiv, which is located in the north-central part of Ukraine. Ukraine suffered after it attained independence. This suffering caused its leaders to attempt a slow plan for economic recovery. The country’s national bank, the National bank of Ukraine also acts as the nation’s central bank. The bank attempts to keep the country’s currency stable. The government brought the national currency back in 1996. Over the years, several banks have offered financial products to private individuals and to institutions. Investors can purchase these securities from the nation’s stock exchange.