March 27, 2024
Kazakhstan Establishes Regulatory Agency to Implement CBDC
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Kazakhstan Establishes Regulatory Agency to Implement CBDC

The National Bank of Kazakhstan (NBK) has created a distinct organization tasked with spearheading the development and execution of the nation’s central bank digital currency (CBDC), known as the digital tenge.

On September 15, in an official statement, it was revealed that the National Payment Corporation (NPC) was established through the reorganization of the Kazakhstan Center for Interbank Settlements. This new entity will have oversight of the national payment system, encompassing interbank clearing services, money transfers, and digital identification.

The NPC’s responsibilities also include the establishment of a “digital financial infrastructure,” which encompasses the implementation of the digital tenge. The development of the digital tenge commenced in February 2023, with a targeted launch date of 2025. Earlier, NBK deputy governor Berik Sholpankupov had articulated the bank’s vision of fostering a “collaboration between traditional finance and DeFi” that could enhance financial inclusion and facilitate international trade.

Presently, the CBDC pilot in Kazakhstan is undergoing a controlled environment pilot phase involving actual consumers and merchants. Notably, one of the key collaborators in this initiative is the world’s largest cryptocurrency exchange, Binance, which is supporting 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. This platform enables users to transfer fiat funds to their accounts on the platform.

Image by www.slon.pics on Freepik

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