Kazakhstan’s central financial institution is launching a pilot mission to concern a brand new stablecoin pegged to the native fiat foreign money in collaboration with Solana and Mastercard.
The Nationwide Financial institution of Kazakhstan introduced the launch of a stablecoin project throughout the framework of its Digital Belongings Regulatory Sandbox, based on a press release shared with Cointelegraph on Tuesday.
The brand new Evo (KZTE) stablecoin is pegged to the Kazakhstani tenge foreign money and is issued by sandbox participant Intebix crypto alternate and native lender Eurasian Financial institution, with help from Solana and Mastercard.
Based mostly on the Solana blockchain, KZTE is instantly reside throughout the central financial institution’s regulatory sandbox, and Mastercard is about to attach KZTE with international stablecoin issuers, Intebix founder Talgat Dossanov informed Cointelegraph.
Nationwide stablecoin to bridge crypto and TradFi
Kazakhstan’s Evo stablecoin is described as a “nationwide stablecoin” designed to attach crypto innovation with conventional finance.
Use circumstances for the KZTE stablecoin embody increasing the crypto-fiat channel, enabling cryptocurrency alternate and supporting transactions via crypto playing cards.
“The mission is a part of the Nationwide Financial institution’s technique to construct a nationwide digital asset ecosystem, fostering progressive digital instruments and the event of Kazakhstan’s digital asset market,” the announcement famous.
Whereas the Evo stablecoin is technically issued by Intebix and the Eurasian Financial institution, the Nationwide Financial institution of Kazakhstan is taking part within the mission by offering a regulatory regime to permit its issuance and testing.
“It’s nonetheless the primary case the place the central financial institution is taking a proactive position within the issuance of the stablecoin,” Dossanov informed Cointelegraph.
Kazakhstan’s first stablecoin
“Right now, we’re launching Kazakhstan’s first stablecoin denominated in our nationwide foreign money, the tenge, throughout the Nationwide Financial institution’s regulatory sandbox,” Nationwide Financial institution Governor Timur Suleimenov reportedly said throughout the Evo opening occasion on Tuesday.
Suleimenov emphasised that the digital age presents each challenges and alternatives, with digital belongings and blockchain know-how enjoying a central position in delivering new companies, enhancing monetary inclusion and driving the nation’s general development.
Kazakhstan’s Evo stablecoin launch comes according to the nation’s bold digital asset agenda, together with exploring the concept of a state-run crypto reserve.
Associated: Kazakhstan’s president calls for national crypto reserve, digital asset law by 2026
In early September, Kazakhstan’s Astana Monetary Companies Authority officially authorized the use of USD-pegged stablecoins like Tether USDt (USDT) for cost of license and supervision charges.
Kazakhstan has additionally emerged as a world chief in Bitcoin (BTC) mining, turning into one of many biggest BTC mining countries by the mining hashrate distribution in 2022, with a share of 13%.
Moreover, Kazakhstan has additionally been making strikes with a central bank digital currency (CBDC), launching the digital tenge in November 2023. The initiative has introduced important improvements to VAT reimbursement processing, the Nationwide Financial institution’s chief digital officer mentioned final yr.
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