XRP’s most prominent rival is rallying this week as a Ukrainian banking giant announces the results of using its blockchain in a new digital currency system pilot.
Stellar (XLM) is a multi-currency transaction network for recording and moving money through the blockchain.
XLM, the Lumen, is the native cryptocurrency of the Stellar network. People can use Lumens as a bridge currency between two fiat currencies when sending money abroad. Stellar aims to move money quickly, at low cost, and without any central authority.
XLM is up 13.4% this week as general crypto markets emerge. Stellar also announced four days ago that TASCOMBANK Hryvnia, one of the oldest banks in Ukraine, recently published the results of a study on the issuance of electronic money on the blockchain, using Stellar as its testnet.
According to the announcement, the study “highlights the advantages of issuing on the blockchain.” Such advantages include more transparency, accountability, security and confidentiality, as well as lower costs per transaction and a higher performance threshold.
The test pilot focused on peer-to-peer and merchant payments to test “e-money issuance on an open blockchain with asset control capabilities for issuers.”
Says Sergii Kholod, Senior Vice President of the Board of TASCOMBANK,
“As part of a pilot project, we explored a new way of issuing and managing electronic money that could be a next-generation means of payment for the citizens and organizations of Ukraine, their employees and customers, government institutions, and international organizations. The results of the pilot project presented the opening of the bank’s infrastructure to blockchain solutions in the future. JSC TASCOMBANK could provide an adequate level of financial services using blockchain assets, taking into account all regulatory requirements.”
Commenting on the success of the pilot, Ukraine’s Deputy Minister of Digital Transformation Oleksandr Bornyakov says:
“The results of the Pilot demonstrated the key advantages of blockchain. In particular, the fast processing and profitability of transactions, the accountability and transparency of the system, and also the simplified access to financial services. The Ministry of Digital Transformation and TASCOMBANK are considering approaches for further market introduction of blockchain-based payment instruments.”
According to Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, the pilot test confirms “that with open source technology, innovators like TASCOMBANK, with the support of MDT, can configure virtual assets that are secure, interoperable and comply with the regulatory standards”.
“We believe this pilot tests Stellar-based real-world solutions and lays the foundation for further adoption of virtual assets in Ukraine.”
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Featured image: Shutterstock/jovan vitanovski