Kazakhstan is integrating its CBDC, Digital Tenge with the BNB Chain. The CBDC or Central Bank Digital Currency was launched by the National Bank of Kazakhstan (NKB) and in a tweet on October 27 Binance’s CEO “CZ” said it will integrate with the BNB chain.
The National Bank Of Kazakhstan launched the CBDC under a pilot program and tests have been conducted in a controlled environment with consumers and merchants.
Binance chief added that it is working with the Kazakh government to increase crypto adoption in the central Asian nation. As a first step towards this direction, Binance obtained a permanent license from the AIFC Financial Services Authority (AFSA) on October 6.
The Binance team also had productive talks with the First Deputy of the Governor of the National Bank of Kazakhstan (NKB) Berik Sholpankulov, and the Head of the Payment and Technological Center, Binur Zhalenov. The Kazakh government will continue to work on its own CBDC venture.
Kazakhstan CBDC Digital Tenge
Binance also has signed an MOU with the Financial Monitoring Agency of the Republic of Kazakhstan to sniff out any illegal crypto activities related to money laundering and terror financing. The anonymity which cryptocurrency affords makes it a perfect tool for drug dealers and other illegal activities to launder money.
Kazakhstan was a flourishing mining hub and the destination of many cryptocurrency mining companies that were evicted from China when the communist nation banned all activities related to cryptocurrencies. However, concerns were raised about the ecological impact of crypto-mining activities and the Kazakh government started regulating the crypto-mining activities. Another nation that has adopted Bitcoin as its currency was El Salvador. However, the move was not successful and the nation is in a midst of an economic crisis.