Tascombank, one of the country's oldest banks, tried a "electronic hryvnia" as part of a plan to create a currency utilizing the Stellar network.
The banking institution disclosed in a report that during the testing, the coin was used in exchanges between buyers and sellers.
The bank sees the use of blockchain technology in its electronic payment system as being commercially viable.
In the paper, the bank emphasized that operations involving the new digital asset were carried out in accordance with the relevant know-your-customer and anti-money laundering regulations.
Tascombank also emphasized that its analysis revealed a number of advantages of employing blockchain, including openness between all parties involved in the transactions and at all stages of circulation, increased security and confidentiality for user data, low costs, and high capacity.
The bank added that it planned to continue investigating the development and application of blockchain-based electronic currency. One of the subjects of its future research will be the potential use of such currency in retail non-cash payments.
The electronic money circulation system that was examined during the pilot is a viable business model for employing blockchain technology.
In addition, Tascombank revealed that the National Bank of Ukraine (NBU) believes that experts at commercial and central banks can utilize the findings of their pilot, which was started at the end of 2021, to undertake additional research.
According to a statement made in December 2021, the initiative is carried out with the cooperation of the Ministry of Digital Transformation and is overseen by the NBU. Oleksandr Bornyakov, the deputy minister of Ukraine's digital transformation, stated:
“This pilot project will serve as a technological basis for the application of electronic money, and is the next key step to advance innovation of payment and financial infrastructure in Ukraine.”