Kazakhstan establishes regulatory agency to implement CBDC

Regulation

The National Bank of the Republic of Kazakhstan (NBK) establishes a separate entity to lead the development and implementation of the central bank digital currency (CBDC), digital tenge. 

As reported in the official statement on Sept. 15, the National Payment Corporation (NPC) would be organized on the basis of the former Kazakh Center for Interbank Payments. The new body will oversee the national payment system, including interbank clearing services, money transfers and digital identification.

The National Payment Corporation will also be responsible for the development of “digital financial infrastructure”, including the implementation of the digital tenge.

Related: US lawmakers advance legislation blocking the digital dollar

The digital tenge development started in February 2023 with an implementation deadline set for 2025. Back then, NBK deputy governor Berik Sholpankupov explained the bank’s vision of a “collaboration between traditional finance and DeFi” that could increase financial inclusion and support international trade.

At this point, the CBDC pilot in Kazakhstan is in a pilot phase using a controlled environment, real consumers, and merchants. One of the principal partners for the project is the world’s largest crypto exchange, Binance. The company supports the pilot with its technical solution, BNB chain.

In June, Binance announced the launch of a regulated digital asset platform in Kazakhstan in partnership with the local Freedom Finance Bank, allowing users to transfer fiat funds to their accounts on the platform.

Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines

Articles You May Like

Ethereum Consolidation Continues – Charts Signal Potential Breakout
Ethereum Price Repeats ‘Bullish Megaphone’ Pattern From 2017 – Why $10,000 Is Possible
Ethereum Attempts Key Breakout: Analysts Set Next Target As ETH Reclaims $3,200
Deribit Moves $783M in Ethereum To Cold Storage: A Bullish Signal for ETH?
XRP Analyst Sets $2 Target If It Holds Key Level – Can It Reach Multi-Year Highs?