The Central Bank of Kazakhstan recommends a phased CBDC rollout in the next three years of time frame.
The Central Bank Digital Currency (CBDC) is a blockchain technology focussed “centralised digital currency” concept, which is under huge demand among the majority of the Central Banks of the World. The majority of the Central Banks aimed to solve the traditional issues associated with the existing Banking systems & want to achieve efficiency in the payment system.
Recently Kazakhstan’s Central Bank published its research paper on CBDC, or say Digital Tenge, and that the initial to final roll-out of the CBDC implementation phase will take up to three years.
“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.”
In short, Kazakhstan’s CBDC will be available in 2023 but the commercial & practical level use cases will be fully achieved by the end of 2025.
The pilot research on Digital Tenge aimed to allow the offline payments & also to bring the better ability for the market participants and infrastructure players to use CBDC under a precise regulatory framework.
Earlier this, on 26 October, Binance CEO Changpeng Zhao informed the crypto community that Kazakhstan was testing its CBDC on the BNB chain in the pilot phase.
Zhao also said that Kazakhstan was working to bring the use case of Digital Tenge in integration with BNB to fill the gap between traditional Banking systems & crypto Banking systems.
In the past couple of years, Kazakhstan showed a significant inclination toward the crypto sector, bringing innovations & new opportunities to the country.
To this date, Kazakhstan is the third biggest country in the world for crypto mining companies, thanks to the crypto-friendly laws of the Kazakhstan government.