Ukraine Bank Launches Stellar Lumens-Based CBDC Pilot

A recent announcement from the Stellar Development Foundation (SDF) has disclosed that the Stellar blockchain can be utilized to test the development of an digital version Hryvnia, Ukraine’s currency.

This CBDC trial will be managed by the global fintech company Bitt as well as one of the oldest banks in Ukraine, TASCOMBANK. The project will be supervised by Ukraine’s central bank as well as oversight by the Ministry of Digital Transformation.

Stellar is a blockchain-based protocol that helps banks, payment providers and people send money across borders easily and quickly. It has been designed to help in solving the scalability problem that cryptocurrency networks like Bitcoin faces. By using Stellar’s decentralized ledger, transactions happen almost instantly with the confirmation of a few blocks.

As part of the program the electronic currency hryvnia will be issued on Stellar. One of the primary tests will be to test use instances for programmable payrolls for employees of the public sector at Diia the IT solutions firm in addition to transactions between peer-to peer and merchants.

Deputy Minister of Ukraine’s Digital Transformation, Oleksandr Bornyakov, stated:

This pilot project will provide the technical foundation for issuing electronic money and is the next vital step in Ukraine’s payment and financial infrastructure innovation.

The primary goal that the company has set is to test the issue of electronic currency using an open blockchain that has the ability to control assets for issuers.

TASCOMBANK will create and test the electronic hryvnia in Stellar that will be integrated into Bitt’s system for managing digital currencies. One of the reasons Stellar is so popular, as per Bitt Chief Executive Officer Brian Popelka is its numerous benefits, such as greater flexibility, which corresponds to the requirements of the electronic currency.

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