The National Bank of Ukraine Installs Stellar Blockchain for its CBDC Pilot Project


A report released by The National Bank of
Ukraine (NBU) reveals that it is running a pilot project to develop a central
bank digital currency (CBDC). This digital currency has been dubbed as E-
hryvnia and it will be deploying the Stellar Lumens blockchain protocol in this
pilot project. The application software for E- hryvnia currency is based on
Stellar SDK with the Stellar core Horizen API.
The report further discloses that the pilot
project to develop the E- hryvnia will be using the Stellar Protocol to observe
and analyze the advantages of developing the digital currency and the execution
of the pilot program.
Why Stellar blockchain?
The report mentions the reasons behind the
deployment of the stellar protocol in this project. The NBU is convinced that
the Stellar network has the capacity to offer capability, speed, simplicity,
and finest security as well as seamless operations to run the functions of the
newly developing currency efficiently.
But the report also mentions that the NBU
will remove some important features of the stellar blockchain due to some
technical challenges in this process. The current version of the Stellar
blockchain is a private version that is likely to affect the elimination of the
errors and threats of the blockchain as well as it may affect the platform
functions when new options are added to the basic protocol. Also, the private
version of the blockchain protocol makes the system highly dependable on the
parent company which has developed it.
The NBU, therefore, has restricted the launch of the E- hryvnia at the national level temporarily. It will further analyze and eliminate the risks involved in future developments. As per the reports, the bank has issued a limited amount of E- hryvnia and the transactions are going in a live environment to trace the challenges coming across.
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Jayashree Ingle
CBW - External Analyst
INDIA