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 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.
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.