Kazakhstan

Kazakhstan Will Build CBDC On Binance’s BNB Chain: CZ Confirms

  • The CEO of the world’s largest crypto exchange Binance, Changpeng Zhao, revealed that the National Bank of the Republic of Kazakhstan will integrate its CBDC into the BNB Chain.
  • Binance had earlier held discussion with the top members of Kazakhstan’s central bank, including Berik Sholpankulov, the First Deputy Governor, and Binur Zhalenov, the Head of Payment and Technological Center.
  • A small proportion of the crypto community believes that Binance shouldn’t work with CBDCs because they lacked the benefits of cryptocurrencies.

The National Bank of the Republic of Kazakhstan has decided to integrate its central bank digital currency (CBDC) into Binance’s BNB Chain, confirmed the exchange’s CEO, Changpeng Zhao.

The world’s biggest crypto exchange, Binance, which has recently strengthened its presence in the Central Asian country and held discussions with top members of Kazakhstan’s central bank, including Berik Sholpankulov, the First Deputy Governor, and Binur Zhalenov, the Head of Payment and Technological Center.

During their meetings, Binnace proposed the institution to integrate its highly-anticipated CBDC on the BNB Chain. Zhao reminded that the National Bank of Kazakhstan has already launched a pilot version of its digital currency in a “controlled environment and with real consumers and merchants.” He informed in a recent tweet that the bank tapped the exchange as a partner for the product.

The partnership was hailed as a bullish move by some Twitter users, who believe it will benefit the entire crypto sector. However, a small proportion said that Binance shouldn’t work with CBDCs because they lacked the benefits of cryptocurrencies.

Partnership with regulator

Earlier this month, Binance announced a partnership with the Financial Monitoring Agency of the Republic of Kazakhstan to grant citizens maximum security when diving into the crypto ecosystem. 

Moreover, the two parties also agreed on closely observing whether notorious wrongdoers use digital assets in their illicit activities, including money laundering and terrorist financing. If detected, such tokens will be blocked, as per the agreement.

The Vice President of Global Intelligence and Investigations at Binance, Tigran Ghambaryan, emphasized that the exchange platform is capable of carrying out such tasks as it has “the most robust compliance program in the industry.”

He stated:

“We express our gratitude to the Financial Monitoring Agency of the Republic of Kazakhstan for their cooperation and commitment to solving problems in the rapidly growing cryptocurrency industry.”

Binance’s efforts to increase its presence in the Central Asian country seem fruitful as it recently received approval from the local regulator, the AIFC Financial Services Authority (AFSA), to operate a digital asset platform and provide custodial services to Kazakhstani users.

Moreover, in May this year, Binance signed a Memorandum of Understanding (MoU) with the government of Kazakhstan to spearhead digital education in the region.

Additionally, Binance has also backed the acquisition of Twitter by Elon Musk, a deal that went through yesterday as Musk aims to establish himself as the CEO of the social media platform.

“Our intern says we wired the $500 million 2 days ago, probably just as I was being asked about Elon/Twitter,”

said CZ confirming that they had sent the money for acquisition.
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Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

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