Kolin Lukas — Crypto — Bitcoin — Finance

The National Bank of Ukraine (NBU) has joined the multitude of world’s central banks deliberating on developing their own digital currency with the intention of building an e-currency christened E-hryvnia. But, the fear of threatening the country’s fiat currency and financial stability have been major concerns.

Nevertheless, NBU, in the Analytical report on the E-hryvnia pilot project, claimed that it would be using the distributed ledger technology, precisely a private version of the Stellar protocol to observe and study the benefit of developing the digital currency as well as carry out the Pilot Project.

While NBU intends building a digital currency that offers simplicity, speed, scalability and optimum security among others, it noticed that Stellar protocol has the ability to offer such criteria, hence the reason for choosing the network.

The system’s application software of the platform upon which the currency would be built is to be based on the SDK Stellar network with Stellar Core Horizon API, the report stated.

However, NBU noted that it would discard some important features of DLT that negates developing suitable financial information systems for its country. NBU pinpointed decentralization of transaction validation function as a feature that goes against the principle that give NBU alone the right to issue e-hryvnia.

NBU in the report averred that DLT major benefits is that it eliminates a single center of trust, giving anyone the ability to check any transaction. This, NBU says, cannot be used alongside the centralized e-hryvnia issuance model. However, DLT can be used for issuing and circulating e-hryvnia.

Using private version of the Stellar blockchain protocol which meets the requirement of the national bank may be unlikely due to the inability of the platform to upgrade to the basic Stellar blockchain protocol.

The private version, as said by NBU, lacks new features introduced to basic blockchain protocol and it is unable to eliminate some of the errors and vulnerabilities of the Stellar blockchain protocol.

“Moreover, the private version of the blockchain protocol makes the system highly dependent on the company developing a certain protocol version, which creates competitive advantages for such company for the whole period of the Platform’s operation,” NBU said.

NBU concludes that it would rather develop the national-scale system like the public versions of modern powerful blockchain protocols.




Love podcasts or audiobooks? Learn on the go with our new app.

KYC: What “Know Your Customer” Means and Why Is It Important

FORSAGE: Uniting The Like-Minded, Inspiring For Growth

Midas coin marketing campaigns and loyalty programmes, Burn-out upgrade, venture investment and…

7 Crucial Facts On Blockchain You Must Know Now

Backtesting strategies in binance (results)

How Shiba Inu Might REVERSE The Crypto Crash

The Best Cryptocurrency Investment of 2019 — Expect 1000% Returns by the End of 2020

I have a vision — Web3 & The Graph

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Kolin Lukas

Kolin Lukas

More from Medium


Make $500 a day via RDP cpu mining

Traveling Thailand & Grounding Ancient Spirituality