Experimentation with central bank digital currencies (CBDCs) has picked up pace around the world, and Kazakhstan is no different. The Central Asian nation, which is a hotspot for crypto miners, has decided to take slow steps in developing and rolling out its CBDC — which is essentially Kazakhstan’s fiat currency in a digital avatar on the blockchain. Currently, the unnamed CBDC is in testing and has entered the second phase of testing under the supervision of the National Bank of Kazakhstan (NBK).
The new updates on Kazakhstan’s CBDC plans were unveiled by NBK officials, Cointelegraph said in its report.
The nation is looking for a base CBDC on the BNB chain, which is the blockchain network developed by Binance Crypto Exchange. Changpeng Zhao, the CEO of Binance, had confirmed the development in early October.
With the launch of its CBDC, Kazakhstan is exploring ways to expand the financial inclusion of its citizens.
In addition, the nation also wants to up its game in digitizing its economy to stabilize its global position.
“Taking into account 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,” Cointelegraph quotes an official document from the NBK as saying.
The introduction of this CBDC into commercial financial systems is expected to be completed by the last phase of 2025.
Kazakhstan is also collaborating on a broader level binance to help develop the next phase of the crypto sector.
The US-based exchange is developing Its Web3 hub in Kazakhstanthe details of which were discussed between Zhao and Kazakh President Kassym-Zhomart Tokayev.
Meanwhile, the Central Asian nation is joining several other countries India, Chinaand the United Kingdom Making progress with your CBDC.
Since Blockchain is a distributed ledger technology, information stored as blocks on the network is widely accessible and immutable, making data storage transparent and reliable.
Managed by central banks around the world, CBDC transactions will leave enduring digital track records that would help nations avoid financial fraud.
