According to Binance CEO Zhao Changpeng, the crypto exchange is going to test the digital tenge, a new type of money that the National Bank of Kazakhstan (NBK) is going to issue. As he noted, the NKB recently launched a CBDC (digital tenge) pilot in a controlled environment and with real consumers and merchants.
“Looking forward to NBK preparing CBDC use cases to see how they could be integrated into BNB Chain to bridge the gap between traditional banking and the crypto ecosystem,” Changpeng wrote on Twitter.
However, the National Bank didn’t respond to the request by the Kursiv edition at the moment of publication.
In August, the Astana Financial Services Authority granted Binance its in-principle approval to operate a digital asset trading facility and provide custody in the Astana International Financial Center. Moreover, the Astana Financial Services Authorities have given Binance a special license that provides the cryptocurrency exchange with the status of a regulated platform.
The International Monetary Fund, however, warns Kazakhstan authorities about potential risks associated with the digital tenge project, although it can help the country to broaden access to financial services.
The new currency is going to be a legal payment instrument, a measure of value and a store of value. The digital tenge isn’t going to replace cash or online payments and will be used in parallel.
The pilot project aimed at testing the concept of the digital tenge was first implemented in 2021. The National Bank has already tested the possible processes of the currency’s distribution, purchase and transfer. However, the regulator is going to go deeper into researching the new digital currency’s benefits and costs. The bank is going to make its final decision this December.