Kazakhstan CBDC to see calculated, phased rollout between 2023 and 2025: report
Experiments with central bank digital currencies (CBDCs) have accelerated 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 designing and rolling out its CBDC – which is essentially Kazakhstan’s fiat currency in a digital avatar on the blockchain. . At present, the unnamed CBDC is being tested 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 have been revealed by NBK representatives, Cointelegraph said in its report.
The nation is looking to base its CBDC on the BNB chain, which is the blockchain network developed by the Binance crypto exchange. Changpeng Zhao, the CEO of Binance, had confirmed the development earlier in October.
With the launch of its CBDC, Kazakhstan is exploring opportunities to expand financial inclusion for its citizens.
Furthermore, the nation also wants to raise its game by digitizing its economy to stabilize its global position.
“Given the need for technological improvements, infrastructure readiness, development of operating model and regulatory framework, it is recommended to ensure phased implementation over three years,” Cointelegraph said. citing an official NBK document.
The introduction of this CBDC into commercial financial systems is expected to be completed by the last phase of 2025.
Also on a larger scale, Kazakhstan is collaborating with Binance to co-develop the next phase of the crypto industry.
The US-based exchange is in the process of designing its Web3 hub in Kazakhstan, the details of which were discussed between Zhao and the President of Kazakhstan, Kassym-Zhomart Tokayev.
Meanwhile, the Central Asian nation joins several other countries like India, China and the UK in making progress with its CBDC.
Since blockchain is a “distributed ledger” technology, information recorded as blocks on the network is widely accessible and immutable, making data storage transparent and reliable.
CBDC transactions, under the direction of central banks around the world, will leave behind a permanent digital history, which would help nations avoid financial fraud.