In a joint article published on 3rd February by the National Bank of Kazakhstan (NBK) as well as Binance, the two institutions announced the launch of a pilot project for the virtual tenge. The article focused on the methods used to regulate digital assets in different countries throughout the globe, particularly in Central Asia and the Commonwealth of Independent States. In his introduction to the study, NBK Deputy Governor Berik Sholpankupov outlined the bank’s hopes for a collaboration between Traditional Finance as well as Decentralized Finance, which might increase access to credit and boost international commerce.
According to what Sholpankupov said, the NBK is following the schedule it established in its legal blueprint. In 2020, the Kazakh government will launch the digital tenge. The current projection for this project’s completion is the year 2025. Furthermore, the research highlighted the fact that a CDBC project including Digital Tenge is now in a trial phase with actual customers and merchants participating in a controlled setting. To further close the gap between the conventional banking system as well as the Crypto ecosystem, BNB Chain and NBK are exploring CBDC connection with the publicly decentralized blockchain.
What is Binance?
The Binance Exchange was established in Hong Kong in 2017, and it is now one of the most popular places to buy and sell Cryptocurrencies online. The platform is geared mostly on the exchange of alternative Cryptocurrencies. Over 600 Cryptocurrency transactions as well as coins, like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), as well as Binance Coin (BNB), are available for trading on Binance’s platform (BNB). If you’re looking for a Cryptocurrency exchange with cheap transaction costs, go no further than Binance, which specializes in Crypto-to-Crypto trading or exchanging one Cryptocurrency for another). It’s quite volatile, so if you pay with the native BNB Cryptocurrency coins, you’ll get a rebate.
What is CBDC?
Funding sources for the government Central banks may issue their own digital currencies, which are a subset of virtual money. Like bitcoins, but backed by the government and valued at the same as the national currency. CBDCs are being developed as well as adopted in several nations. Understanding what digital currencies are and what they signify for society is crucial as more and more nations explore methods of making the switch. Government-issued coinage that isn’t supported by a tangible asset, such as silver or gold is called “fiat money.” It’s money that could be utilized like any other to buy and sell goods and services. Historically, fiat money was only available in the form of coins as well as banknotes. However, with the advent of modern technology, governments and financial institutions have been able to issue and accept digital credit-based fiat money.
More on the CBDC Pilot with Binance Backing
A growing number of businesses and consumers around the country are making the switch to digital payment and retail systems. On January 27, the ASFA published a consultation paper that delves into the problems with the Astana International Financial Center’s Digital Asset Trading Facility (DATF) regulatory structure. The research suggested further risk mitigation methods and other changes to the regulatory environment. Kazakhstan’s effort to introduce a digital currency might have a profound impact on the country’s monetary landscape, but much more work is needed. With support from Binance as well as the National Bank of Kazakhstan, however, the initiative has a good chance of succeeding and serving as a model for other countries considering the adoption of Cryptocurrencies.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.