Stellar blockchain to be used by Ukrainian banks

Representatives of one of the oldest commercial banks in Ukraine have published a report on the use of electronic money on the Stellar blockchain. Having realized the advantages of blockchain technologies, Tascombank called on other Ukrainian financial institutions to start issuing and distributing electronic money on the blockchain.

The pilot project by Tascombank and Stellar lasted for two years to evaluate the pros and cons of issuing electronic money on an open blockchain with asset control capabilities for issuers. It focused on peer-to-peer and trade payments, as well as payroll. Sergiy Kholod, First Deputy Chairman of the Board of Tascombank, explained: «We have been exploring a new way of issuing and managing electronic money that could become a new generation of payment instruments for Ukrainian citizens and organizations.»

According to Tascombank, during the study, the Stellar blockchain improved the security and privacy of customer data. Thanks to blockchain technologies, transactions in the bank have become cheaper and much faster. Deputy Minister of Digital Transformation Oleksandr Borniakov emphasized that the Stellar study highlighted a number of «key advantages» of the actual use of blockchain technology. According to Borniakov, Ukrainian regulators are considering introducing additional permits for the use of digital assets and encouraging banks to test blockchain.

It is worth noting that in early December, the International Rescue Committee (IRS) started cooperation with the Stellar blockchain under the name «Stellar Aid Assist» to make humanitarian payments to Ukrainians in cryptocurrency. According to the information on the official Stellar website, Ukrainians who do not have a bank account or a plastic card will be able to receive financial assistance. The funds are paid in USDC stablecoins to Vibrant mobile wallets.