Ukraine has begun testing the digital hryvnia

Taskcombank, one of the oldest commercial banks in Ukraine, is launching a pilot project for a digital hryvnia based on the Stellar blockchain.

Ukraine is testing the digital hryvnia

On December 14, the Stellar Development Foundation (SDF) announced a pilot project for Ukraine’s Digital Currency Central Bank (CBDC) involving Taskombank and Bitt’s fintech. The project is implemented under the supervision of the National Bank of Ukraine and supported by the Ministry of Digital Transformation.

Deputy Minister of Digital Transformation Oleksandr Bornuakov noted that the pilot project would provide “a technological basis for electronic money management and will be another key step in supporting innovation in payment and financial infrastructure in Ukraine.”

SDF CEO Denelle Dixon said testing had already begun. As part of this, employees of the state-owned company Diia, which deals with IT solutions, will receive a salary in digital hryvnia. The regulated e-hryvnia will be privately announced using blockchain technology created in accordance with current Ukrainian legislation for electronic money, she added.

The aim of the initiative is to test the creation of electronic money on an open blockchain. Taskcombank is responsible for creating and testing the e-hryvnia on Stellar, which will later be deployed in the Bitt transaction network known as the digital currency management system. CEO Bitt Brian Popelka said:

“Bitt’s digital currency management system will provide Tuscombank with all the technology it needs to securely deposit, store, distribute and pay for digital hryvnia.”

The Ukrainian government has been cooperating with the Stellar team for a long time to implement the digital currency. In January 2021, the Ministry of Digital Transformation entered into an agreement with the SDF to develop a digital asset strategy and infrastructure for the CBDC.