Ukrainian Banking Giant Finds Success In Using Stellar (XLM) For Pilot Program

January 25, 2023 2:23 pm Comments

Ukrainian banking giant, TASCOMBANK Hryvnia, just recently announced the results of using the Stellar network to test its new digital currency pilot program.

The purpose of the pilot program was to understand all the advantages of using blockchain when issuing electronic money and Stellar was chosen as the ideal blockchain to test the idea.

After all, the Stellar blockchain uses its native token XLM in order to facilitate transactions and is specifically designed to be used as a bridge currency when one is trading between 2 fiat currencies.

The results of the pilot program was very positive and the bank stated that it clearly highlighted many benefits such as the fact that transaction costs are lower and that each transaction was highly transparent.

Based on these results, it looks like there is a very good chance that other banks and financial institutions within Ukraine might also follow suit and utilize Stellar in the same way.

DailyHodl reports:

XLM is up by 13.4% this week as the general crypto markets pop. Stellar also announced four days ago that TASCOMBANK Hryvnia, one of the oldest banks in Ukraine, recently released the results of a study about issuing electronic money on the blockchain, using Stellar as its test network.

The test pilot focused on peer-to-peer and merchant payments to test “the issuance of electronic money on an open blockchain with asset-control capabilities for issuers.”

Says Sergii Kholod, the First Deputy Chairman of the Board of TASCOMBANK,

“As part of a pilot project we explored a new way of issuing and managing electronic money which could be a new generation means of payment for the citizens and organizations of Ukraine, their employees and clients, government institutions, and international organizations.

The results of the pilot project presented the openness of the bank’s infrastructure to blockchain solutions in the future. JSC TASCOMBANK could provide an appropriate level of financial services using blockchain assets, taking into account all regulatory requirements.”

Now that it is clear that the pilot program proves the viability of using a blockchain like Stellar to configure virtual assets, it seems that the next step is to push for greater adoption within the country.

Using the pilot study as a foundation, investors and regulators within the country expect that the implementation of digital assets will be further accelerated so that they can be incorporated into the existing financial system.

Ukraine also seems to have a pro-crypto environment where the government and law makers aim to provide an environment that promotes growth and innovation for crypto.

After all, the use of crypto has been highly beneficial for the country since its geo-political conflicts with its neighbor country Russia.

As the benefits become more apparent, Ukraine may have a chance to become one of the crypto centers of the world. concludes:

The outcome demonstrates the proven potential of “real world” use cases built on the consensus-driven blockchain and “sets the foundation for greater adoption of virtual assets in Ukraine,” according to Denelle Dixon, chief executive of the Stellar Development Foundation.

Largely positive in its assessment of the current role and future potential of cryptocurrencies countrywise, the results ought to bolster a growing number of developing digital asset initiatives pioneered by Ukrainians.

Plus up-and-coming related pushes pioneered by outside players, such as the UN’s significant move to utilize the stablecoin USDC to act as the rails for disseminating humanitarian aid packages to those in need of money fast: Ukrainian refugees.

Crypto exchange Binance earlier this month struck a deal with a prominent pharmacy in the country to enable crypto-driven payments for medical products, including medicine. The rationale is to bolster Ukraine’s battered infrastructure via digital assets

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