One of Ukraine’s oldest commercial banks, Tascombank, has initiated a trial initiative to issue an electronic hryvnia on Stellar.
The project is being carried out with the support of the Ministry of Digital Transformation and under the supervision of the National Bank of Ukraine. Oleksandr Bornyakov, Ukraine’s Deputy Minister of Digital Transformation, stated,
“This pilot project will serve as 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.”
The project’s goal is to test the issuance of electronic money on an open blockchain while also providing issuers with asset-control capabilities. TASCOMBANK will develop and test a regulated electronic hryvnia based on Stellar, which will be used by Bitt’s Digital Currency Management System (DCMS). Bitt’s market-proven DCMS includes a safe minting system, a core monetary transaction network, and a Digital Currency Operations Manager.
TASCOMBANK Chairman of the Board, Volodymyr Dubey, said,
“With the rapidly growing impact of virtual assets on our everyday life and economic landscape, it is essential to utilize the advantages of blockchain technology and new related products as a part of the bank’s long-term market strategy. Cooperation with Bitt to build on Stellar allows us to connect our core banking system with blockchain-based infrastructure, creating an ecosystem that includes a full range of banking products and operations with electronic currency on the Stellar blockchain. Electronic currency paves the way to more sophisticated products in the virtual assets field that we are excited to explore.”
Brian Popelka, CEO of Bitt, stated,
“Bitt is excited to work with a leading blockchain network like Stellar to leverage its many benefits, including greater flexibility that aligns with the electronic hryvnia’s specific needs. Bitt’s DCMS will equip TASCOMBANK with all of the technology required to securely mint, store, issue, distribute, and redeem the electronic hryvnia. In a country that has been quick to adopt a variety of digital currency technologies and applications, we see a bright future for the electronic hryvnia and many use cases that will bring value in Ukraine and beyond.”
“Stellar is an open network that was developed with asset issuance in mind, and is especially suited to assets like the electronic hryvnia,” stated Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. It provides issuers, such as TASCOMBANK, with a set of restrictions that they may tailor to their asset control requirements while keeping the open ledger’s interoperability and flexibility. TAS and Bitt have chosen the Stellar network for this groundbreaking pilot, which we are very excited about.”
The current e-money legislation in Ukraine will be used to create this regulated electronic hryvnia. The payment services law, which will control the circulation of electronic money and the potential issuing of a digital currency under the National Bank of Ukraine’s jurisdiction, is expected to take effect in 2022.
Bitt is a global financial technology firm that delivers digital currency solutions to central banks, financial institutions, and ecosystem participants globally. It employs over 60 highly qualified experts from all over the globe. Bitt is a financial technology company that specializes on central bank digital currencies (CBDC).
The company’s Digital Currency Management System (DCMS) uses distributed ledger technology based on blockchain to bring the benefits of the most efficient financial ecosystem to date.
Stellar is a network for financial goods and services that is decentralized, quick, scalable, and uniquely sustainable. It is a cross-currency transaction system as well as a platform for the issuing of digital assets, with the goal of connecting the world’s financial infrastructure. The Stellar network, which already has over 5 million accounts, is used by financial institutions all around the world to issue assets and settle payments.
Stellar Development Foundation
The Stellar Development Foundation (SDF) is a non-profit organization dedicated to the advancement and expansion of Stellar, an open-source network that connects the global financial infrastructure. The Stellar Foundation was founded in 2014 to assist in the maintenance of Stellar’s software, to support the technical and commercial communities who are developing on the network, and to provide a voice to regulators and institutions.
The Foundation aims to provide equal access to the global financial system by utilizing the Stellar network and blockchain technology to unlock the world’s economic potential.