XLM Jalank 14 Percent After The Oldest Bank In Ukraine Chooses Stellar For The Issuance Of Electronic Money

Blockchain Stellar XLM was chosen by the oldest bank in Ukraine for digital money trials. (Photo; Doc. Coinatory)

JAKARTA Stellar Lumens (XLM) has experienced a significant increase in the last two weeks. XLM recorded an increase of 14.5 percent, based on Coingecko data. This increase was triggered by the announcement of the cooperation between one of the oldest banks in Ukraine TASCOMBANK Hryvnia with Stellar.

The XRP competitor experienced a significant spike following the announcement of the selection of the Stellar blockchain for the development of a new digital currency project. The Stellar blockchain was selected by TASCOMBANK as part of a pilot peer-to-peer payment system.

Stellar is a multi-currency transaction network for transferring money quickly and at low cost via blockchain. XLM is the original cryptocurrency of the Stellar network.

TASCOMBANK has released the results of a study related to the issuance of electronic money on blockchain and using the Stellar network for its testing. According to the announcement, the study "surfaced the benefits of issuing (electronic currencies) on blockchain."

Among these several benefits are more transparent, secure, confidential, and accountable in addition to lower transaction fees. The testing focuses on peer-to-peer and retail payment mechanisms. It is intended to test "the issuance of electronic money on an open blockchain with asset control capability for publishers."

"As part of a pilot project, we are exploring new ways to issue and manage electronic money that can become a new generation of payment tools for Ukrainian citizens and organizations, their employees and clients, government agencies, and international organizations. The results of this pilot project present the bank's infrastructure openness to future blockchain solutions," said Sergii Kholod, Deputy Chairperson of the TASCOMBANK Council, quoted by DailyCoin.

"JSC TASCOMBANK can provide a suitable level of financial services using blockchain assets, taking into account all regulatory requirements," added Kholod.

Meanwhile, Ukraine's Deputy Minister of Digital Transformation, Oleksandr Bornyakov, positively welcomed this blockchain-based electronic money test. He praised the advantages brought by blockchain technology because it was able to make the financial system more cost-effective and effective so that it could be implemented in financial services.

"The Pilot's results prove the main advantage of blockchain. In particular, rapid processing and effectiveness of transaction costs, accountability and system transparency, as well as simplified access to financial services. The Ministry of Digital Transformation and TASCOMBANK is considering approaches to further market recognition from blockchain-based payment instruments," said Bornyakov.

According to Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, the trial confirms "that with open source technology, innovators like TASCOMBANK, with MDT support, it can configure safe, operational, and regulatory standards."

"We believe this trial proves the real-world solution built on Stellar and establishes the basis for the adoption of larger virtual assets in Ukraine," added Dixon.

Recently, a number of countries have chosen to use blockchain technology for the development of central bank digital currencies or CBDCs. Some of them are Turkey, Sweden, Iran, Russia and a number of other countries.