Kazakhstan Taps Solana, Mastercard for Tenge Stablecoin

Kazakhstan’s central financial institution launched a pilot mission with a brand new stablecoin pegged to the native fiat foreign money in collaboration with Solana and Mastercard.

The Nationwide Financial institution of Kazakhstan introduced the launch of the stablecoin project throughout the framework of its Digital Property Regulatory Sandbox, in response to a press release shared with Cointelegraph on Tuesday.

The brand new Evo (KZTE) stablecoin is pegged to the Kazakhstani tenge foreign money and is issued by sandbox participant Intebix crypto alternate and native lender Eurasian Financial institution, with help from Solana and Mastercard.

Primarily based on the Solana blockchain, KZTE is instantly stay throughout the central financial institution’s regulatory sandbox, and Mastercard is ready to attach KZTE with international stablecoin issuers, Intebix founder Talgat Dossanov instructed Cointelegraph.

Nationwide stablecoin to bridge crypto and TradFi

Kazakhstan’s Evo stablecoin is described as a “nationwide stablecoin” designed to attach crypto innovation with conventional finance.

Use instances for the KZTE stablecoin embrace increasing the crypto-fiat channel, enabling cryptocurrency alternate and supporting transactions by crypto playing cards.

“The mission is a part of the Nationwide Financial institution’s technique to construct a nationwide digital asset ecosystem, fostering revolutionary digital instruments and the event of Kazakhstan’s digital asset market,” the announcement famous.

Whereas the Evo stablecoin is technically issued by Intebix and the Eurasian Financial institution, the Nationwide Financial institution of Kazakhstan is taking part within the mission by offering a regulatory regime to permit its issuance and testing.

“It’s nonetheless the primary case the place the central financial institution is taking a proactive function within the issuance of the stablecoin,” Dossanov instructed Cointelegraph.

Kazakhstan’s first stablecoin

“At this time, we’re launching Kazakhstan’s first stablecoin denominated in our nationwide foreign money, the tenge, throughout the Nationwide Financial institution’s regulatory sandbox,” Nationwide Financial institution Governor Timur Suleimenov reportedly said through the Evo opening occasion on Tuesday.

Suleimenov emphasised that the digital age presents each challenges and alternatives, with digital belongings and blockchain expertise taking part in a central function in delivering new providers, enhancing monetary inclusion and driving the nation’s total development.

Kazakhstan’s Evo stablecoin launch comes in keeping with the nation’s formidable digital asset agenda, together with exploring the concept of a state-run crypto reserve.

Associated: Kazakhstan’s president calls for national crypto reserve, digital asset law by 2026

In early September, Kazakhstan’s Astana Monetary Providers Authority officially authorized the use of USD-pegged stablecoins together with Tether USDt (USDT) for fee of license and supervision charges.

Kazakhstan has additionally emerged as a worldwide chief in Bitcoin (BTC) mining, changing into one of many biggest BTC mining countries by the mining hashrate distribution in 2022, with a share of 13%.

Kazakhstan has additionally been making strikes with a central bank digital currency (CBDC), launching the digital tenge in November 2023. The initiative has introduced vital improvements to VAT reimbursement processing, the Nationwide Financial institution’s chief digital officer mentioned final 12 months.