Kazakhstan’s central bank launched a pilot project with a new stablecoin pegged to the local fiat currency in collaboration with Solana and Mastercard.
The National Bank of Kazakhstan announced the launch of the stablecoin project within the framework of its Digital Assets Regulatory Sandbox, according to a statement shared with Cointelegraph on Tuesday.
The new Evo (KZTE) stablecoin is pegged to the Kazakhstani tenge currency and is issued by sandbox participant Intebix crypto exchange and local lender Eurasian Bank, with assistance from Solana and Mastercard.
Based on the Solana blockchain, KZTE is immediately live within the central bank’s regulatory sandbox, and Mastercard is set to connect KZTE with global stablecoin issuers, Intebix founder Talgat Dossanov told Cointelegraph.
National stablecoin to bridge crypto and TradFi
Kazakhstan’s Evo stablecoin is described as a “national stablecoin” designed to connect crypto innovation with traditional finance.
Use cases for the KZTE stablecoin include expanding the crypto-fiat channel, enabling cryptocurrency exchange and supporting transactions through crypto cards.
“The project is part of the National Bank’s strategy to build a national digital asset ecosystem, fostering innovative digital tools and the development of Kazakhstan’s digital asset market,” the announcement noted.
Promotional image of the new tenge-backed stablecoin. Source: IntebixWhile the Evo stablecoin is technically issued by Intebix and the Eurasian Bank, the National Bank of Kazakhstan is participating in the project by providing a regulatory regime to allow its issuance and testing.
“It’s still the first case where the central bank is taking a proactive role in the issuance of the stablecoin,” Dossanov told Cointelegraph.
Kazakhstan’s first stablecoin
“Today, we are launching Kazakhstan’s first stablecoin denominated in our national currency, the tenge, within the National Bank’s regulatory sandbox,” National Bank Governor Timur Suleimenov reportedly said during the Evo opening event on Tuesday.
Suleimenov emphasized that the digital age presents both challenges and opportunities, with digital assets and blockchain technology playing a central role in delivering new services, enhancing financial inclusion and driving the country’s overall advancement.
Intebix founder Talgat Dossanov, Eurasian bank CEO Lyazzat Satiyeva, National Bank Governor Timur Suleimenov, Mastercard CIS executive Rafal Trepka (from left to right). Source: Solana SuperteamKazakhstan’s Evo stablecoin launch comes in line with the country’s ambitious digital asset agenda, including exploring the concept of a state-run crypto reserve.
Related: Kazakhstan’s president calls for national crypto reserve, digital asset law by 2026
In early September, Kazakhstan’s Astana Financial Services Authority officially authorized the use of USD-pegged stablecoins including Tether USDt (USDT) for payment of license and supervision fees.
Kazakhstan has also emerged as a global leader in Bitcoin (BTC) mining, becoming one of the biggest BTC mining countries by the mining hashrate distribution in 2022, with a share of 13%.
Kazakhstan has also been making moves with a central bank digital currency (CBDC), launching the digital tenge in November 2023. The initiative has brought significant improvements to VAT reimbursement processing, the National Bank’s chief digital officer said last year.
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Source: https://cointelegraph.com/news/kazakhstan-solana-mastercard-stablecoin-kzte?utm_source=rss_feed&utm_medium=feed%3Fsid%3D1c4ae5dea547de6c%26cb%3Dn6ffrv%26_rnd%3Dn6ffrv&utm_campaign=rss_partner_inbound
