Ukrainian Taxbank will test the digital hryvnia on the Stellar blockchain

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Taxbank, a major commercial bank in Ukraine, will test the creation and use of digital hryvnia on the Stellar network to pay salaries to government officials. The project could be launched in 2022.

In press release
saidthat the digital hryvnia will be created and tested on the Stellar network and deployed through the digital currency management system of the fintech company Bitt. The goal of the project is a pilot issue of digital money on the blockchain with the ability to manage assets for issuers.

Valeriy Danilenko, Deputy Chairman of the Board of Tascombank, said that the use of programmed wages for employees of Diia, a state-owned company that develops IT solutions in Ukraine, will be tested. Individuals, companies and government organizations will participate in it, the exact number of users is still unknown.

The project is being implemented in cooperation with the Ministry of Digital Transformation of Ukraine, and all work with digital assets is monitored by the National Bank. The digital hryvnia will be created in accordance with the law of Ukraine on electronic money. The launch is scheduled for 2022.

“We strive to implement the project promptly, within a reasonable time frame, and we are working on this together with partners and stakeholders,” Danilenko said.

According to the statement, if the project is successfully implemented, it should become the basis for issuing digital currency and a new stage in the development of the country’s payment and financial infrastructure.

“Working with Stellar will help us connect the banking system with the blockchain infrastructure. We will create an ecosystem that includes the entire range of banking products and e-currency transactions, ”noted Vladimir Dubey, Chairman of the Board of Taxombank.

In July, the President of Ukraine signed the Law on Payment Services. It allows the National Bank of Ukraine (NBU) to issue state digital currency. In addition, according to the law, the NBU is allowed to test technologies in cooperation with startups.

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