Key Highlights:
- Kazakhstan has announced the launch of its Evo stablecoin project.
- The country’s national bank is working on the new stablecoin in collaboration with Solana and Mastercard.
- Earlier, the authorities announced establishing a crypto reserve in the country that would be managed at a state level.
Kazakhstan has already made the first step in the industry of stablecoins, having issued the Evo token, which is tied to the state currency. It was the national bank of Kazakhstan that initiated the project together with crypto exchange Intebix, Eurasian Bank, and Solana, as well as Mastercard.
The central bank announced that the project is a part of its Digital Assets Regulatory Sandbox, which offers the structure of the project release and testing. Kazakhstani stablecoin The Evo, denoted as KZTE, is pegged to the tenge of Kazakhstan and has already been activated within the sandbox program.
According to Intebix founder Talgat Dossanov, Mastercard will operate to provide a connection between the newly introduced token and other issuers of stablecoins across the globe. “It’s still the first case where the central bank is taking a proactive role in the issuance of the stablecoin,” Dossanov said, which underlines the role of this regulator.
About Kazakhstan’s First Domestic Stablecoin
When the launch of Evo took place, National Bank Governor Timur Suleimanov emphasized the importance of the token to the country’s digital finance vision. “Today, we are launching Kazakhstan’s first stablecoin denominated in our national currency, the tenge, within the National Bank’s regulatory sandbox,” Suleimenov stated, according to Interfax.
Another indicator revealed by the adoption of blockchain, mentioned by the governor, was the number of opportunities it opened. He noted 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.”
Even though Evo is published under the supervision of Intebix along with the Eurasian Bank, the regulator has assumed the role of ensuring the provision of the legal environment to facilitate experimentation with the token. It has been stated that the project is a ‘national stablecoin’ aimed at establishing a transition between the traditional world of finance and digital assets.
Increasing Crypto-Fiat Coverage Amid Crypto Adoption Push
As stated in the announcement, Evo has applications spanning a spectrum of providing the exchange between crypto and fiat currencies up to the ability to make transactions with crypto payment 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 statement said.
The partnership with Mastercard will widen the coverage of the stablecoin by linking it with the networks of international issuers, whereas the Solana blockchain offers the technological platform.
Over the past few years, Kazakhstan has been developing a digital finance environment. At the beginning of September, the Astana Financial Services Authority granted the usage of the U.S.-dollar-pegged stablecoins, including the USDT of Tether, to pay the regulatory fees.
Central bank digital currency development has also been secured by the country. According to the chief digital officer at the National Bank, in November 2023, it launched the digital tenge, which was already used in such processes as the reimbursement of VAT.
In the meantime, Kazakhstan has also managed to sustain its role as a large participant in Bitcoin mining. In 2022, the country was ranked one of the top areas hosting mining activity, with 13% of the world’s hashrate distribution.
There are also wider ideas that authorities have discussed, such as the establishment of a crypto reserve that will be managed on a state level. The release of the Evo stablecoin is regarded as another step in further experimentation by the government on blockchain-based tools.
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Source: https://www.cryptonewsz.com/kazakhstan-bank-stablecoin-solana-mastercard/