Kazakhstan's National Bank Establishes National Payment Corporation to Manage Development and Deployment.
On September 15, an official announcement revealed that the National Bank of Kazakhstan (NBK) has established the National Payment Corporation (NPC) to spearhead the advancement and execution of the nation's central bank digital currency, the digital tenge.
This development involves the reorganization of the Kazakhstan Center for Interbank Settlements, with the NPC assuming oversight of the entire national payment ecosystem.
This encompasses crucial functions such as interbank clearing services, electronic fund transfers, and digital identity verification. Additionally, the NPC is entrusted with the pivotal task of building the 'digital financial infrastructure,' which includes the seamless integration of the digital tenge into the financial landscape.
The newly established agency represents a transformation of the Kazakhstan Center for Interbank Settlements and carries the responsibility of overseeing the entire national payment system, encompassing functions such as facilitating money transfers, managing interbank clearing services, and administering digital identification processes.
In addition to these crucial tasks, the National Payment Corporation (NPC) is also entrusted with the development of the 'digital financial infrastructure.' A significant aspect of this initiative involves the creation and integration of the digital tenge, Kazakhstan's central bank digital currency. The journey toward CBDC development commenced in February 2023, with a projected launch date set for 2025.
Berik Sholpankupov, the Deputy Governor of the National Bank of Kazakhstan (NBK), has emphasized the importance of fostering collaboration between traditional financial systems and decentralized finance. This collaboration has the potential to enhance financial inclusion and bolster international trade.
Currently, Kazakhstan's CBDC pilot program is in the controlled environment trial phase, with real merchants and consumers actively participating. Notably, Binance, the world's leading cryptocurrency exchange, is a key partner in this CBDC initiative, providing technical support through its BNB Chain. In June, Binance announced a partnership with local Freedom Finance Bank to establish a regulated digital asset platform in Kazakhstan, enabling users to seamlessly transfer fiat funds to their accounts on the platform.
At present, Kazakhstan's Central Bank Digital Currency pilot program is undergoing a controlled environment trial, featuring active participation from genuine consumers and merchants. Notably, one of the primary collaborators in this venture is Binance, the world's largest cryptocurrency exchange, which is lending its technical expertise through the utilization of BNB Chain.
In June, Binance unveiled its partnership with local institution Freedom Finance Bank to introduce a regulated digital asset platform in Kazakhstan. This platform enables users to seamlessly transfer traditional fiat funds to their respective accounts on the Binance platform, marking a significant development in the country's digital asset ecosystem.