Blockchain On Ukrainian Bank’s Radar After Stellar Test Run

TASCOMBANK, a large Ukrainian commercial bank, is considering the use of blockchain technology after the completion of a pilot. The bank used the Stellar network in the pilot and noted several benefits.

One of Ukraine’s oldest commercial banks, TASCOMBANK, has recommended using blockchain technology after using the Stellar network (XLM) for an electronic money pilot. The bank conducted a pilot related to decentralized technology and recommended “adoption to transform the payments landscape in Ukraine.”

The report issued provides information to the National Bank of Ukraine and the Ministry of Digital Transformation of Ukraine. It listed several benefits of decentralized technology. These include greater transparency and accountability, improved security and confidentiality, low transaction costs, instant payments and high throughput.

The pilot was first launched in 2021, with the intention of testing the technology for better payment systems in the country. Sergii Kholod, First Deputy Chairman of the Board of TASCOMBANK, said:

“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, public institutions and international organizations. The results of the pilot project presented the openness of the bank’s infrastructure for blockchain solutions in the future.

TASCOMBANK operates several banking activities, including consumer and corporate lending, factoring, electronic trading, procurement and financing of trade operations. The pilot project was launched with support from the Ministry for Digital Transformation.

Ukraine uses crypto as individuals and companies

As Ukraine defends itself against a Russian invasion, it has turned to cryptocurrencies to support its efforts. Several individuals and groups in the crypto community have come together to help Ukraine. It received $54 million in cryptocurrency as of August 2022, while the NFT sector has also been a contributing factor.

Binance also partnered with Ukraine’s pharmaceutical company ANC to establish digital payments for related products. Børsen has also entered into collaboration with other companies in the country with similar goals.

TASCOMBANK Not the only bank to turn to Blockchain Tech

Banks have become increasingly interested in using blockchain technology and digital assets. These businesses are beginning to see the benefits of technology and how it can enhance their services.

JPMorgan Chase is one of the most notable of these banks, with the bank applying for a digital wallet trademark in November 2022. Visa has also released a proposal allowing Ethereum payments from their own wallets. ABN Ambro also recently became the first bank in the Netherlands to register a digital bond on a public blockchain.