BNB Chain Will Be Integrated into Kazakhstan’s CBDC
The CEO of Binance, Changpeng Zhao, has announced that the company’s BNB Chain will be effective in the Kazakh CBDC. The country’s central bank has been on the CBDC project since 2021. It is, however, making headway.
Finalizing Decisions
The final decision on the project’s feasibility will be made in December. This is according to the central bank statement last year.
Changpeng Zhao, popularly known as CZ, made an announcement via his Twitter page. He said the Binance team is committed to pushing the wider adoption of cryptocurrencies.
He also said the team met the Kazakh central bank’s first Deputy Governor, Berik Sholpankulov. At the meeting was also the Payment and Tech Center Head, Binur Zhalenov.
The result of the meeting with the top officials is that BNB will be integrated with the digital Tenge. That is, the upcoming Kazakh CBDC.
There are no great details about the CBDC yet. But it is possible that it will be built on a multi-chain structure. As a matter of fact, the central bank stated last December that the project is piloted on the Corda platform presented by R3.
A CBDC pilot phase was recently run in the country in recent months. It was carried out with actual merchants and customers but in a controlled space.
Binance Prominence in Kazakhstan
With regard to the test, CZ said he is looking forward to the central bank’s use case preparation for the CBDC. This is when they will determine how the BNB Chain can be integrated. It will be used to bridge the gap between crypto and traditional banking institutions.
The pilot program is tested with the two biggest commercial banks in the country. They are Eurasian Bank and Kaspi Bank.
The Kazakh CBDC program has two wings. This means that the central bank oversees the whole system, on one hand. Then commercial banks would open digital Tenge wallets for users.
It is from there that they would exchange the CBDC and transfer it between banks. The central bank also said it is not planned that the CBDC would replace bank notes or cashless transactions. Therefore, it will not reflect on bank balances but only on the users’ wallets.
CZ also mentioned in his Twitter message that Binance has a cordial relationship with Kazakhstan. The company received a permit to operate its exchange and other businesses in the country about three weeks ago.
The permit gives Binance the position of a regulated crypto platform. It equally authorizes it to offer digital assets trading, custody services, and fiat money withdrawal and deposit.
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