Kazakhstan’s Central Bank Launches New Stablecoin KZTE Pegged to the Tenge
Kazakhstan’s central bank is initiating a pilot project for a stablecoin pegged to the local fiat currency in collaboration with Solana and Mastercard. The National Bank of Kazakhstan made this announcement regarding the stablecoin project as part of its Digital Assets Regulatory Sandbox, as stated in a release shared on Tuesday.
Details of the KZTE Stablecoin
The newly introduced Evo (KZTE) stablecoin is pegged to the Kazakhstani tenge and is issued by Intebix crypto exchange, a participant in the sandbox, alongside local lender Eurasian Bank, all with support from Solana and Mastercard. Built on the Solana blockchain, KZTE is now operational within the central bank’s regulatory sandbox. Mastercard will play a key role in connecting KZTE with global stablecoin issuers, according to Intebix founder Talgat Dossanov in his remarks.
Kazakhstan’s Evo stablecoin aims to serve as a “national stablecoin,” blending crypto innovation with traditional financial frameworks. Potential use cases for the KZTE stablecoin include broadening the crypto-fiat channel, facilitating cryptocurrency exchanges, and supporting transactions via crypto cards.
The announcement highlighted, “This project is part of the National Bank’s strategy to develop a national digital asset ecosystem that promotes innovative digital solutions and enhances Kazakhstan’s digital asset market.” While Intebix and Eurasian Bank are the formal issuers of the Evo stablecoin, it is important to note that the National Bank of Kazakhstan is involved by establishing a regulatory framework for its issuance and testing.
Dossanov noted, “This is the first instance where the central bank is proactively engaging in the issuance of a stablecoin.” National Bank Governor Timur Suleimenov remarked during the Evo launch event on Tuesday, “We are launching Kazakhstan’s first stablecoin denominated in our national currency, the tenge, within the National Bank’s regulatory sandbox.”
Suleimenov pointed out that the digital landscape brings both challenges and opportunities, emphasizing the pivotal role of digital assets and blockchain technology in delivering new services, enhancing financial inclusion, and promoting the country’s overall progress.
The launch of Kazakhstan’s Evo stablecoin aligns with the nation’s ambitious digital asset plans, which also include investigating the idea of a state-operated crypto reserve. In early September, Kazakhstan’s Astana Financial Services Authority officially approved the use of USD-pegged stablecoins, such as Tether USDt (USDT), for covering license and supervisory fees.
Moreover, Kazakhstan has positioned itself as a global leader in Bitcoin (BTC) mining, ranking among the top BTC mining countries by hashrate distribution in 2022, holding a 13% share. Additionally, Kazakhstan is progressing with its central bank digital currency (CBDC), having launched the digital tenge in November 2023. This initiative has led to notable improvements in VAT reimbursement processing, as reported by the National Bank’s chief digital officer last year.
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