BNB Blockchain Chosen by Kazakh National Bank for Digital Currency Integration
Binance CEO Changpeng Zhao made the announcement on Twitter that the National Bank of Kazakhstan planned to incorporate its digital currency onto the BNB blockchain.
We had a productive meeting with Berik Sholpankulov, the First Deputy Governor of the National Bank of Kazakhstan, and Binur Zhalenov, the Head of the Payment and Technological Center. We’ve connected them with the BNB Chain group to talk about testing the integration of their Digital Tenge,” Zhao tweeted.
Just this month, Binance became an official financial regulator in Kazakhstan after receiving a permanent license from the Astana International Financial Centre (AIFC) to operate a digital asset marketplace and offer custodial services throughout the country. The National Bank began investigating the cryptocurrency market last year, when it established a trial study to assess the dangers and advantages of the digital market.
“In case you’re unaware, the National Bank of Kazakhstan just started a crypto currency trial in a supervised condition and with actual customers and businesses,” tweeted Zhao. “I look forward to NBK creating crypto currency application scenarios to determine how they may be incorporated into the BNB Chain in order to fill the void between conventional banking and the cryptocurrency environment.”
Kazakhstan has traditionally been an appealing site for cryptocurrency miners owing to its cheap energy costs. Recognizing the market’s capability and the misuse of energy usage by miners, the Kazakh government began formulating and implementing rules.
In his twitter post, Zhalenov stated, “The partnership is good for both sides as it may accelerate digital tenge acceptance by strengthening our value offer for crypto-savvy, experienced clients and enhancing confidence in a supervised crypto environment.”
The lower house of the Kazakh Parliament, the Mazhilis, passed a law on digital products on October 12, outlining registration processes, regulations for the distribution of unsafe digital assets, notably their issue and exchange, and a breakdown of applicable taxes.
“Miners are already becoming fully integrated members of the Kazakh economy. Prior to this, cloud-based mining services were mostly used by non-residents. Kazakhstan was a supplier of raw materials to the blockchain space. When introducing the measure, Mazhilis deputy Yekaterina Smyshlyayeva said that miners would be required to seek licenses in Kazakhstan in order to form legal businesses and become fully-fledged tax payers.