Binance BNB Chain will debut Kazakhstan CBDC

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Binance has lately been pioneering several crypto pursuits in Kazakhstan.

The exchange's CEO, Changpeng Zhao, has shared how Binance is officially helping the region draft a legislative crypto framework.

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In addition to this, the exchange recently took to Twitter to announce that its BNB chain is set to play a crucial role in expanding Kazakhstan's CBDC project.

Kazakhstan to launch debut CBDC project on BNB Chain

Binance is set to play an instrumental role in helping Kazakhstan build its first CBDC.

The exchange's CEO, Changpeng Zhao, took to Twitter to announce that Kazakhstan will be integrating its debut CBDC project on Binance's BNB Chain.

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In a detailed Twitter thread uploaded by Binance's Changpeng Zhao, the exchange's CEO shared how the Binance team has been pushing "crypto adoption globally."

CZ further tweeted that Binance had recently obtained a licence to operate in Kazakhstan and had also held a meeting with Kazakhstan's first Deputy Governor of the National Bank of Kazakhstan (NKB), Berik Sholpankulov, and the Head of the Payments and Technology Center, Binur Zhalenov.

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He later shared how the exchange had introduced the dignitaries to the BNB Chain community to discuss the testing of their CBDC project on the blockchain.

The outcome of the meeting seemed positive, with Zhao announcing that Kazakhstan's debut CBDC project will be integrated into the BNB Chain.

A Central Bank Digital Currency, or CBDC, can be described as digital tokens that are primarily issued by central banks of a particular country.

CBDCs are pegged to the value of the country's traditional currency to help regions adapt to the growing age of financial digitization.

Kazakhstan had earlier announced its decision to pilot its CBDC venture "digital Tenge" on the R3s Corda platform.

The National Bank of Kazakhstan later revealed how its CBDC plans are rolling out smoothly and are currently being tested in a controlled environment with real consumers and merchants.

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The pilot is also undergoing preliminary testing with two of the country's largest banks, Kaspi Bank JSC and Eurasian Bank JSC.

The NKB had earlier released a comprehensive report concerning its CBDC plans and use cases in January 2022. The bank reportedly tested CBDCs in the context of how the digital Tenge could be used between second-tier banks and external parties.  

Moreover, the NKB also explored how its CBDC would work for cross-border transactions under the country's regulatory framework.

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