As part of the project, the country’s civil servants will receive their salaries in digital hryvnia.
Ukrainian Tascombank and Fintech startup Bitt has launched a pilot project to issue digital hryvnia based on the Stellar blockchain network.
The project team will test the use of digital currency to pay the salaries of government officials in the country.
For technical implementation of the project, the company will use the electronic service of the Ukrainian state service Diia.
The company also wants to test p2p and b2b payments in digital hryvnia, according to a press release.
Taskcombank will issue Ukrainian electronic hryvnia on the Stellar blockchain. Fintech startup Bitt will provide secure transactions using digital currencies.
Read also: MoneyGram trades Ripple for Stellar and USD Coins.
“Working with Bitt and Stellar allows us to connect our traditional banking system with the blockchain infrastructure, creating an ecosystem that includes various banking products and digital currency transactions on the Stellar blockchain. Digital currencies will pave the way for more sophisticated virtual asset products that we want to explore,” said the head of the bank.
The National Bank of Ukraine will oversee the implementation of the project, and the country’s Ministry of Digital Transformation will provide support.
The regulated digital hryvnia will be issued in accordance with the current Ukrainian law on electronic money. We will remind, in September, that the Ukrainian Rada adopted the law on virtual assets in the second reading. It is expected to take effect in 2022.
Tascombank is one of the oldest private banks in Ukraine. In terms of assets, it ranks 4th and is included in the list of systemically important banks. As of February 1, 2021, the net assets of the lending institution amounted to UAH 24 billion (RUB 65.4 billion). For comparison, Sber’s net assets on the same date amounted to 34.2 billion rubles.
Ukraine has joined more than 80 countries in developing a central bank digital currency (CBDC). Many of them use blockchain company Ripple to issue CBDCs.
Read also: Ripple Helps UK Launch Digital Pound Sterling.