Kazakhstan launches stablecoin in partnership with Solana and Mastercard
TL;DR Breakdown
- Kazakhstan has announced the launch of a new stablecoin project pegged to its local fiat currency.
- The stablecoin project was launched in a partnership with Solana and Mastercard.
- Kazakhstan has been going all in on digital assets with several initiatives since 2022.
Kazakhstan’s central bank has announced the launch of a new stablecoin pilot project pegged to the local fiat currency in a collaboration with Solana and Mastercard. The new stablecoin project, announced by the National Bank of Kazakhstan, falls within the framework of its Digital Assets Regulatory Sandbox, according to local media in the country.
According to the reports, the new stablecoin, known as Evo (KZTE), will be pegged to the Kazakhstani tenge currency and will be issued by sandbox participant Intebix crypto exchange and local lender Eurasian Bank. The stablecoin will also be issued with assistance from collaborators Solana and Mastercard. The stablecoin is based on the Solana blockchain and has gone live within the central bank’s regulatory sandbox.
Kazakhstan announces the launch of its Evo stablecoin
According to Intebix founder Talgat Dossanov, Mastercard is in charge of connecting KZTE with global stablecoin issuers. In the statement released by Kazakhstan, it describes the Evo stablecoin as a national stablecoin designed to connect crypto innovation with traditional finance. One of the use cases for the stablecoin includes expanding the crypto-fiat channel.
As per the announcement, other use cases will be to provide an enabling environment for exchanges and support transactions through crypto 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 announcement noted.
While the stablecoin will be technically issued by Intebix and the Eurasian Bank, the National Bank of Kazakhstan is also participating in the project, providing a regulatory cover to allow its issuance and testing. “It’s still the first case where the central bank is taking a proactive role in the issuance of the stablecoin,” Dossanov.
All in on digital assets with a strategic crypto reserve
“Today, we are launching Kazakhstan’s first stablecoin denominated in our national currency, the tenge, within the National Bank’s regulatory sandbox,” National Bank Governor Timur Suleimenov reportedly said during the Evo opening event on Tuesday. He noted that the digital age presents both challenges and opportunities, with digital assets and blockchain playing an important role.
Suleimanov also noted that the new stablecoin will enhance financial inclusion and drive the country’s overall advancement. Meanwhile, the stablecoin launch is coming at a time when the country is tinkering with launching a state-run crypto reserve. The call was made earlier this month by President Kassym-Jomart Tokayev, laying out plans for AI and digital assets endeavours.
He also proposed that the country’s Agency for Regulation and Development of the Financial Market draft a law to effect the development, to ensure it is passed before 2026. “It is advisable to create a State Fund of Digital Assets based on the National Bank’s Investment Corporation. This structure will accumulate a strategic crypto reserve consisting of promising assets in the new digital financial system,” Kassym-Jomart said.
In addition, Kazakhstan’s Astana Financial Services Authority also authorized the use of USD-pegged stablecoins, including USDT, for payment of license and supervision fees. The country has also emerged as a global force in Bitcoin mining, becoming one of the biggest Bitcoin mining countries by mining hashrate distribution in 2022, with a share of 13%. Kazakhstan also launched its digital tenge in November 2023, a move that the National Bank’s chief digital officer said has brought great progress to VAT reimbursement processing.
