Kazakhstan Uses BNB Chain to Test CBDC
The National Bank of Kazakhstan (NKB) intends to test the central bank digital currency (CBDC) on Binance.
The pilot project of the digital tenge will be integrated into BNB Chain. Changpeng Zhao, the founder and CEO of Binance, announced the relevant plans of the Kazakh government on his Twitter account.
Zhao said that Kazakhstan’s CBDC pilot project would be tested on BNB Chain to determine options for further development of the state’s digital currency. Binance CEO claims the initiative will “bridge the gap between traditional banking and the crypto ecosystem” in the country.
The digital tenge pilot project is now being tested with local consumers and merchants. The government hopes that developing a national CBDC can increase the crypto adoption rate among the population.
It’s worth noting that Binance has become one of the few organizations that have received official permission from the government of Kazakhstan to provide services in the country. The exchange has recently signed a memorandum of understanding with the Financial Monitoring Agency of the Republic of Kazakhstan on financial monitoring in the fight against financial crimes.
Recall that the government of Kazakhstan has obliged its citizens to pay additional taxes on electricity, which they use for mining cryptocurrencies. However, mining in the country is far from “green” energy standards. Studies have shown that fossil fuels mostly power mining in Kazakhstan.