The Central Bank of Kazakhstan has recommended making the internal CBDC available as early as 2023, with a gradual expansion of functionality and commercial operation by the end of 2025.
Kazakhstan, the third largest bitcoin in the world
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Mining hub after the United States and China, has found the opportunity to launch its own central bank digital currency (CBDC), a digital tenge. The National Bank of Kazakhstan (NBK) announced the discovery after completing the second phase of testing.
In late October, Binance CEO Changpeng “CZ” Zhao announced that Kazakhstan’s CBDC would be integrated with BNB Chain, a blockchain built by the crypto exchange. The country’s main motivation for conducting studies on CBDC was to test its potential to improve financial inclusion, foster competition and innovation in the payments industry, and increase the country’s global competitiveness.
Pilot research focusing on offline payments and programmability recommended involving market players and infrastructure players for different scenarios and offered to clarify the language to be used by regulators across the country. The latest research paper cemented Kazakhstan’s intent to deploy digital tenge. A rough translation of the report reads:
“Given the need for technological improvements, infrastructure preparation, development of an operating model and regulatory framework, it is recommended to ensure phased implementation over three years.”
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The Central Bank of Kazakhstan has recommended making the internal CBDC available as early as 2023, with a gradual expansion of functionality and commercial operation by the end of 2025.
Related: Binance signs memorandum of understanding with Kazakhstan to tackle financial crime
As many Russians crossed the border to neighboring borders amid war-related uncertainties, Kazakhstan announced the legalization of a cryptocurrency-to-cash conversion mechanism.
“We are ready to go further. If this financial tool shows its additional relevance and security, it will surely receive full legal recognition,” President Kassym-Jomart Tokayev said at the Digital Bridge 2022 international forum.
As Cointelegraph reported, neighboring country Georgia has also decided to introduce new crypto regulations in a bid to become a global crypto hub.
