Kazakhstan, the the third largest in the world bitcoin (BTC) mining center after the United States and China, found viability in launching its own central bank digital currency (CBDC), a digital tenge. The National Bank of Kazakhstan (NBK) revealed the find after completing the second phase of testing.
At the end of October, Binance CEO Changpeng' CZ' Zhao announced that the Kazakhstan CBDC would integrate with BNB Chain, a blockchain built by the crypto exchange. The country's main motivation for conducting studies on CBDCs was to test its potential to enhance financial inclusion, promote competition and innovation in the payments industry, and increase the nation's global competitiveness.
the pilot investigation focused on offline payments and programmability recommended the inclusion of market participants and infrastructure players for different scenarios and proposed explanatory language to be used by the country's regulators. latest research paper consolidated Kazakhstan's intention to implement the digital tenge. A rough translation of the report reads:
"Taking into account the need for technological improvements, infrastructure preparation, development of an operating model and a regulatory framework, it is recommended to ensure a phased implementation over three years."
The central bank of Kazakhstan has recommended that the internal CBDC be available from 2023 with a gradual expansion of functionality and introduction into commercial operations until the end of 2025.
Related: Binance Signs MoU With Kazakhstan To Fight Financial Crimes
As many Russians crossed the border to neighboring borders amid war-related uncertainties, Kazakhstan announced to legalize a mechanism to convert cryptocurrencies into cash.
โWe are ready to go further. If this financial instrument shows its highest relevance and security, it will certainly receive full legal recognition,โ President Kassym-Jomart Tokayev said while speaking at the Digital Bridge 2022 international forum.
As Cointelegraph reported, the neighboring country of Georgia has also been moving to introduce new crypto regulations to become a global crypto hub.
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