According to the recent announcement, Kazakhstan is planning to double its investment in digital currency mining at the end of this year and continues to develop its central bank digital currency (CBDC). Kazakhstan officials revealed the nation’s digital currency development plan to experts from Russia and China at “2020 Astana Online Financial Day”.
According to the China Ministry of Commerce, Kazakhstan’s digital currency mining project has attracted 82.6 million Tenge, which is nearly 20 million USD. Moreover, it is estimated that by 2020, the investment will increase by 80 million Tenge. Talking about CBDC, it is a new kind of digital central bank money that can be distinguished from settlement balances supported by commercial banks. Its interest has risen in recent years due to its potential implications for mortgage systems, monetary policy implementation, and stability of the financial system.
Kazakhstan is Eyeing CBDC
Initially, in May 2020, Kazakh President Mushin’s adviser suggested the introduction of distributed ledger technology, blockchain, and digital currency ‘Tenge,’ to resist corruption and ensure transparency in the allocation of state budget funds. Further, it adopted a development outline for blockchain and digital technology in June.
Presently, the Central Bank of Kazakhstan is describing the feasibility of introducing digital Tenge. Kazakhstan’s governor’s adviser Zalenov believes that where the main task of the central bank is to maintain financial market stability and the inflation target, the digital currency solution is secondary. The key is to guarantee that the digital currency system design is consistent in compliance with monetary policy goals.
Previously, Kazakhstan previously has developed a system of cryptocurrency storage and circulation meant to standardize these processes through a professional platform.
Manager of the development department of the Astana International Finance Center, Kaliyev, states that the AIFC is ready to provide test support in Kazakhstan and formulate a legal basis to introduce its digital currency. The AIFC’s protocol includes classifications of cryptocurrencies, smart contracts, digital wallets, and other terms related to the cryptocurrency market.
Latest Announcements in Blockchain Space
As blockchain is booming and revolutionizing all sectors of the economy, tech giants and reputed organizations are finding various uses cases of this technology across numerous industries.
According to the recent announcement, European Innovation Council (EIC) has awarded 5 million euros to several blockchain projects in an attempt to promote the use of ‘Blockchains for the Social Good’ program. EIC mentioned that the amount intends to promote blockchain development in the fields of fair trade, monetary inclusion, traceability, decentralized economy, and much more. Bison Trails, blockchain infrastructure-as-a-service company, has recently announced an upgrade that will move the Ethereum network from its PoW consensus mechanism to PoS.
Moreover, interestingly, as the Indian court decision has reversed its laws that restricted banks from providing services to crypto traders and businesses, mobile crypto apps are on the rise, following the supreme court decision in India.
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