Kazakhstan’s CBDC to See Calculated, Phased Roll-Out Between 2023-2025: Report

The fresh updates on Kazakhstan’s CBDC plans have reportedly been revealed by the representatives from the National Bank of Kazakhstan (NBK).

Written by Radhika Parashar, Edited by Richa Sharma | Updated: 19 December 2022 18:05 IST

Kazakhstan’s CBDC to See Calculated, Phased Roll-Out Between 2023-2025: Report

Photo Credit: Pixabay/ Sergei Tokmakov

Kazakhstan has joined India, China, and the UK, in making progress with CBDC

Highlights

Kazakhstan is working with Binance to develop a crypto hub
Kazakhstan’s CBDC to be based on Binance’s BNB blockchain
Kazakhstan has not yet disclosed the name of its upcoming CBDC

The experiments with Central Bank Digital Currencies (CBDCs) have 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 devising and rolling-out its CBDC — that essentially is Kazakhstan's fiat currency in a digital avatar on blockchain. At present, the unnamed CBDC is under trial and has entered the second phase of testing under the oversight of the National Bank of Kazakhstan (NBK).

The fresh updates on Kazakhstan's CBDC plans were revealed by the representatives from the NBK, Cointelegraph said in its report.

The nation is looking to base its 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 earlier in October.

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With the launch of its CBDC, Kazakhstan is exploring the possibilities of expanding financial inclusion for its citizens.

In addition, the nation also wants to elevate its game in digitising its economy to stabilise its global standing.

“Taking into account the need for technological improvements, infrastructure preparation, development of an operating model and a regulatory framework, it is recommended to ensure a phased implementation over three years,” Cointelegraph quoted an official document from the NBK as saying.

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The introduction of this CBDC into commercial financial systems is expected to attain completion by the last phase of 2025.

On a wider scale as well, Kazakhstan is collaborating with Binance to co-develop the next phase of the crypto sector.

The US-based exchange is designing Its Web3 hub in Kazakhstan, details of which were discussed between Zhao and Kazakhstan president 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 saved as blocks on the network are largely accessible and unchangeable that makes data storage transparent and reliable.

CBDC transactions, under the management from central banks around the world, will leave behind digitally permanent track records, which would help nations avoid financial frauds.

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Further reading: Cryptocurrency, CBDC, Kazakhstan

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More