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Binance launched a test stablecoin in Kazakhstan

The largest cryptocurrency exchange Binance has released a test stablecoin based on the digital tenge.

The Kazakhstan division of Binance, together with the National Bank of Kazakhstan, has released a test stablecoin backed by the digital tenge. The National Payment Corporation of Kazakhstan is also participating in the project. The tool was launched on the BNB Smart Chain (BSC) test network.

The project aims to “demonstrate a stablecoin model that significantly reduces the risk of parties using the digital tenge.” According to the developers, the real-time transparency of the instrument’s calculations is guaranteed by the “proof of collateral” service.

Proof of collateral is an audit procedure. Its goal is to provide users with real-time proof that the stablecoins they hold in their wallets are fully backed.

“The initiative is a powerful step in strengthening the global adoption of cryptocurrencies,” the Binance team commented on the project.

The digital tenge is the third form of the national currency of Kazakhstan, in addition to physical and non-cash fiat. It was presented in August 2023. A separate government body in Kazakhstan is responsible for the development of the digital tenge. Many other countries, including Russia, are also developing a central bank digital currency (CBDC).

Kazakhstan is among the top 10 countries in terms of cryptocurrency adoption. In particular, mining is developed in the country. At the end of 2022, miners replenished the state treasury of Kazakhstan by $7 million. In June 2023, Binance launched a local exchange in the country.

Source: Cryptocurrency

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