Binance CEO Changpeng Zhao has announced that the BNB Chain will be contributing to the digital currency (CBDC) being created by the National Bank of Kazakhstan. The Central Asian country has been working on its own CBDC since May 2021 and is now in competition with other countries that are also developing a CBDC.
The National Bank of Kazakhstan began the digital tenge pilot project in 2021 to investigate the advantages and disadvantages of the potential adoption of digital currency. The central bank created a model for decision-making for the introduction of the digital tenge in July of this year, and by the end of the year, it is anticipated that it would have made a final choice.
The integration with Binance’s BNB Chain will bring added security and efficiency to the Digital Tenge. The National Bank of Kazakhstan is currently in the process of conducting research and evaluating potential technology partners for their CBDC project.
Binance, one of the largest cryptocurrency exchanges, received a license from Kazakhstan earlier this month to operate within the country. This move is part of Kazakhstan’s efforts to develop a digital economy and attract foreign investment. Zhao claims that the agreement is a component of the business’s Law Enforcement Training Program (LETP), which aims to prevent cybercrime. The exchange’s currency, BNB, is currently trading at $289, down 0.1 percent. Over the course of seven days, the coin increased by 6.4%.
As the nation’s central bank indicated late last year, a decision on whether to start a CBDC is required by December 2022. CZ, also known as Changpeng Zhao, claimed that the Binance team has been working nonstop to increase the use of cryptocurrencies worldwide. He met with Binur, the head of the Center for Payments and Technology, and Berik Sholpankulov, the first deputy chairman of the National Bank of Kazakhstan (NKB). The meeting’s outcome was the incorporation of BNB Chain into Kazakhstan’s CBDC’s digital tenge.
CBDC appears to be built on a multi-chain design, while the specifics are currently unknown. CBDC is being tested on NKB’s Corda platform on his R3 as of December 2021. The National Bank of Kazakhstan is set to explore various use cases for a central bank digital currency (CBDC) that can be integrated with the Binance Chain. The move will help unite traditional banking and the crypto ecosystem. In his tweets, Zhao said that Binance is looking forward to NBK preparing CBDC use cases and how it could integrate BNB Chain.
Kazakhstan: Crypto adoption on the rise
Kazakhstan’s government has been pushing for new technologies, including blockchain technology, to improve its economy. Additionally, Kazakhstan’s President Kassym-Jomart Tokayev approved legalizing crypto trading and mining in the country. He even announced the development of a safe virtual asset market by Binance. Kazakhstan also presented a draft law on crypto mining to efficiently regulate crypto mining.
Binance has been advancing in Kazakhstan for some time now, the crypto exchange was reported to work with the Kazakhstan government to boost the country’s blockchain adoption. The Binance team is also helping Kazakhstan launch its digital tenge cryptocurrency and integrate it with BNB Chain technology.
Integrating BNB Chain into Kazakhstan’s CBDC project could bring added security and efficiency to the Digital Tenge. This move by Kazakhstan showcases the country’s dedication to becoming a leader in the digital economy and adopting new technologies. Binance’s efforts in Kazakhstan also demonstrate its commitment to expanding the use of cryptocurrencies worldwide.