The Central Bank of Kazakhstan has completed the second phase of testing for its digital currency and published a white paper. The studies carried out by the regulator at the time of introduction did not identify significant risks to the country’s financial stability and economy.
The Monetary Authority of Kazakhstan reports on the progress of the Digital Tenge Pilot Project
The National Bank of Kazakhstan (NBK) has announced the successful completion of the second phase of testing the platform for its central bank digital currency (CBDC). The results of the trials and the study on the need for the new version of the national fiat, tenge, are presented in a whitepaper published by the regulator.
The first phase of the pilot was conducted between July and December 2021, when a prototype was developed to investigate the viability of the CBDC concept, detailed an announcement cited by RBC Crypto. In the second phase, from January to December 2022, the platform was fine-tuned and trials started with financial market participants and users.
According to the bank, the research has confirmed that the digital tengen is a feasible project. Once introduced, CBDC can increase the availability of financial services, including through a feature that allows offline transactions as well as offering new products and services. A survey of consumers indicated that the majority would use the coin.
NBK adds participants, launches new services in next phase of CBDC project
The third phase of the implementation of the digital national currency will start in January and continue through 2023. Next year, the developers plan to introduce a solution for commercial use. During the fourth stage, which is scheduled to end in December 2025, NBK will invite more participants and launch additional services.
In October, Binance founder and CEO Changpeng Zhao announced on Twitter that NBK plans to use the Bnb chain for distribution of the digital token. The world’s largest crypto trading platform was granted a license to operate as a provider of exchange and custody services for digital assets from the Astana International Financial Center (AIFC), the country’s financial hub.
Authorities in Kazakhstan, which became a major mining hub since China cracked down on the industry in 2021, have also been working to regulate crypto-related activities more comprehensively. Earlier in December, the lower house of parliament, Mazhilis, passed a dedicated bill that, in addition to mining, addresses crypto trading and taxation.
What future for cryptocurrencies in Kazakhstan do you expect after the launch of the digital tenge? Share your thoughts in the comments section below.
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