Kazakhstan, which is the world's third largest Bitcoin (BTC) mining hub country after the United States (US) and China, is also seen refusing to lag behind in launching its own central bank digital currency (CBDC) called Digital Tenge.
The launch is said to have reached its conclusion after the National Bank of Kazakhstan (NBK) completed the second phase of testing of the CBDC.
Speaking from Changpeng Zhao (CZ), the Chief Executive Officer (CEO) of Binance stated that Kazakhstan's CBDC will be integrated with the BNB chain which is a blockchain established by him.
One of the main reasons Kazakhstan is interested in delving into CBDC is simply to test if digital currency is able to increase financial inclusion and the country's competitiveness globally, including encouraging competition and innovation in the payment industry.
In this regard, the responsible party should focus on improving technology, providing infrastructure, developing an operating model and regulatory framework so that the CBDC can be launched in stages over a period of three years.
This follows because Kazakhstan's central bank intends to establish a CBDC in early 2023 and introduce commercial operations by the end of 2025.
While Kazakhstan believes that their CBDC is capable of developing if it is fully recognized by law on the grounds that its financial instruments are safe and do not have any fraud, commented President Kassym-Jomart Tokayev at the Digital Bridge 2022 international forum.
