For a long time the Stellar Development Foundation, (SDF), has been working closely with the Ukrainian government in relation to their Central Bank Digital Currency. As Bitt and the SDF have recently launched a pilot project to enable electronic hryvnias on the network, the collaboration is beginning to show results.
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Per a press release, the partners will test the CBDC’s use cases and its programmable capabilities. These funds will be used to pay Diia’s employees as well as to make payments to individual merchants.
Bitt released a statement stating that the project was under the control of the National Bank of Ukraine, assisted by their Ministry of Digital Transformation. In that sense, Ukraine’s Deputy Minister of Digital Transformation, Oleksandr Bornyakov commented the following on their CBDC’s test phase:
The pilot project serves as the technological foundation for electronic money issuance and will be the key to advancing innovation in payment and financial infrastructure.
During the trial on Stellar, the partners will also test the capacity to issue digital currency with “asset-control capabilities for issue”s”. The banking institution will be in charge of testing the implementation of the hryvnia on Bitt’s Digital Currency Management System (DCMS).
The latter company has been in charge of developing a stablecoin with its payment rails for the National Bank of Belize, and it’s behind the Eastern Caribbean Central Bank (ECCB) initiative to launch a CBDC. The target for this project, per its official website, is to increase “opportunities for financial growth”.
Similar to this project, the digital hryvnia will use the “moderns software techniques” and alleged scalable and performant benefits from the DCMS. This system will “protect” the user’s data while regulatory bodies still can access “needed” information, the official website adds the following on their DCMS:
It is built-in to provide security, with secure defaults and defense-in depth. Each module can scale independent of the others. This allows for automatic adjustments to accommodate variable needs.
Stellar Spearheads Ukranian Initiative
Bitt’s DCMS system will allow for secure minting and currency management. It also provides a network of monetary transactions. These three items are the core of every CBDC-related project. Volodymyr dubey, Chair of the TASCOMBANK stated:
Collaboration with Bitt in order to build Stellar will allow us to link our core banking system to blockchain-based infrastructure. This creates an ecosystem which includes all banking products as well as operations using electronic currency on Stellar.
Dubey also expressed excitement to improve the country’s financial products by using virtual assets. TASCOMBANK, the Ukranian Central Bank, and TASCOMBANK both have long-term strategies that incorporate innovation and support for blockchain technology.
Denelle Dixon, Executive Director and Chief Operating Officer of Stellar Development Foundation added:
Stellar, an open network designed for asset issuance, is well-suited to assets such as the electronic hryvnia. TASCOMBANK and other issuers have access to a variety of controls they can set up for their asset management needs. The open ledger allows them the interoperability, flexibility, and versatility of an open network.
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