Kazakh National Bank: Stablecoin and CBDC Collaboration

What to Know:

• Kazakhstan is advancing its digital currency initiatives with a unique two-tier approach.
• The National Bank of Kazakhstan collaborates with Solana and Mastercard to develop the state-backed Evo stablecoin.
• The country is shaping up to be Central Asia’s leading crypto hub, fostering relationships with global exchanges like Binance.

Kazakhstan continues to pioneer the crypto market with its distinctive approach towards digital assets, focusing on both its central bank digital currency (CBDC) and a state-linked stablecoin. In September, the National Bank of Kazakhstan, in a joint venture with Solana and Mastercard, unveiled the Evo stablecoin. This marks one of the pioneering instances of state-backed stablecoin development on a global scale.

The bank also made significant strides with its CBDC, the digital tenge, which was introduced in 2023. When discussing these two digital currencies, Berik Sholpankulov, deputy governor of the National Bank of Kazakhstan, emphasized the potential for integration and interoperability rather than competition. He also noted that the digital tenge pilot is ongoing, with new participants and projects being actively integrated.

Sholpankulov further described private stablecoins such as Evo as tokens tied to specific ecosystems, with their distribution depending on the number of participants. In contrast, the digital tenge, issued by the national bank, is recognized as legal tender expected to play a significant role in interbank settlements. This distinction could provide a foundation for private companies and fintech startups to develop solutions without depending directly on traditional banks.

Echoing Sholpankulov’s views, Talgat Dossanov, founder of Intebix exchange, which issues the Evo stablecoin in partnership with Eurasian Bank, stated these initiatives are not necessarily in competition. Instead, they can coexist in different niches and complement each other. He noted that the digital tenge strengthens the country’s financial sovereignty while the stablecoin accelerates integration into the global crypto market.

Kazakhstan’s two-tier system positions the digital tenge as a tool of monetary policy and interbank settlement and the stablecoin as a practical instrument for businesses and consumers. This approach is particularly crucial for countries with less stable currencies or emerging markets, where CBDCs are vital to ensure financial sovereignty and reduce reliance on foreign currencies and foreign-backed stablecoins.

The dual-track approach reflects Kazakhstan’s broader ambition to become Central Asia’s leading crypto hub. The nation has pioneered the payment of regulatory fees in stablecoins, launched one of Central Asia’s first spot Bitcoin (BTC) funds, and is moving to establish a state-backed crypto reserve. Additionally, the Kazakh government has fostered close relationships with major global exchanges like Binance.

In a recent meeting with former Binance CEO Changpeng “CZ” Zhao, National Bank of Kazakhstan Chairman Timur Suleimenov discussed the launch of a new KZTx stablecoin, tokenization initiatives, and innovation projects. This meeting and other advancements highlight Kazakhstan’s role in the global crypto industry, making it an attractive destination for crypto investors and traders.

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