- National Bank of Ukraine integrates Stellar for CBDC pilot
- The app software for the CBDC pilot is based on Stellar’s SDK with Stellar’s Core Horizon API
- The National Bank of Ukraine has called its CBDC project, e-hryvnia
Stellar Lumens News Today – according to a report published by the National Bank of Ukraine, the financial institution is at the verge of developing a CBDC (central bank digital currency). Per the report, the project has progressed greatly. The National Bank of Ukraine has called the CBDC, e-hryvnia.
The publication details that the bank will use the Stellar Blockchain for the project. It points out that CBDC should be convertible to cash one-to-one with Ukraine’s hryvnia currency. The report adds that e-hryvnia will function as a means of exchange like fiat. The apex financial institution of Ukraine has ruled out the possibility of having other use cases for e-hryvnia. The platform meant to offer the basis for the CBDC was built on a private model of Stellar’s Blockchain.
Stellar’s Network Was Chosen after Many platforms Were Considered
According to the National Bank of Ukraine, it chose Stellar after considering other systems and networks. It notes that the main reason for selecting the Stellar network for the development of its CBDC is because a decision was made after a participant of the project suggested that they provided a free ready-made basic solution of such systems that will be used in the protocol on the Platform’s implementation. This will be done with an option to finish the basic solution according to the requirements established at the preparation phase.
Regarding which features will make up the platform for the CBDC of Ukraine, the financial institution said the system’s application software will be based on Stellar’s SDK network with Stellar’s Core Horizon API.
The National Bank of Ukraine Has Issued a Limited Sum of e-hryvnia
The central bank also noted that the platform has some challenges and limitations. The major technological risk of the platform in its current model is that a private version of Stellar’s Blockchain was used. This was brought following the NBU’s requirements. The Institution points out that the said restrictions will make it impossible to launch the CBDC nationally for now.
The National Bank of Ukraine has weighed the risks involved before proceeding with future developments. The Bank also stated that it has issued just a limited sum of its CBDC (e-hryvnia). It added that it has managed to conduct transactions in a lively place. The NBU drew useful conclusions regarding the issuance of its CBDC and was able to gain valuable and practical experience. This inevitably highlighted its capabilities and willingness to implement these types of projects.