Tascombank, one of the oldest commercial banks in Ukraine, is launching a Stellar-based pilot for Ukraine’s national fiat currency, the hryvnia.
The Stellar Development Foundation (SDF) announced on Tuesday a private electronic hryvnia pilot launched by Tascombank and fintech company Bitt.
The electronic hryvnia pilot is being implemented under the supervision of the National Bank of Ukraine and is supported by the Ministry of Digital Transformation (MDT).
Oleksandr Bornyakov, deputy minister of the MDT, said that the pilot project will provide a “technological basis for the issuance of electronic money” and is the “next key step to advance innovation of payment and financial infrastructure in Ukraine.”
SDF CEO Denelle Dixon told Cointelegraph that the pilot work has already kicked off, with the first test including programmable payroll for public employees at Diia, a public IT solutions enterprise owned and supported by the MDT of Ukraine.
“This regulated electronic hryvnia will be privately issued e-money on blockchain technology, built under Ukraine’s current e-money legislation,” Dixon noted.
The purpose of the initiative is to test the issuance of electronic money on an open blockchain. Tascombank is responsible for building and testing the electronic hryvnia on Stellar to deploy it on Bitt’s transaction network known as Digital Currency Management System, or DCMS.
“Bitt’s DCMS will equip Tascombank with all of the technology required to securely mint, store, issue, distribute, and redeem the electronic hryvnia,” Bitt CEO Brian Popelka said.