In contrast to neighboring Russia, Kazakhstan may become one of the most crypto-friendly nations in Central Asia.
Kazakhstan is exploring the idea of launching a “CryptoTenge”. It would be a digital representation of Kazakhstan’s national currency (the Kazakhstani Tenge). Just like Russia’s rumored CryptoRuble, the CryptoTenge would function as a digital alternative to fiat currency, exchangeable at a 1:1 ratio.
To explore the launch of a CryptoTenge token, a group of organizations from across Kazakhstan have come together to form the “Blockchain and Cryptocurrency Association”. In mid-November, that organization issued a request to the nation of Kazakhstan to operate as a legal entity within the country.
If successful, that application would allow the Blockchain and Cryptocurrency Association to work with the National Bank of Kazakhstan to setup cryptocurrency rules across the country. The association would advise the National Bank on how to create the CryptoTenge, reports The Astana Times, and setup rules and regulations surrounding the growing cryptocurrency industry.
Kazakhstan is setting itself up as a leader in the cryptocurrency world – particularly in Central Asia and among CIS countries. Kazakhstan’s apparent embrace of cryptocurrency exists in contrast to neighboring Russia, which has increasingly tightened regulations on cryptocurrencies and may even ban cryptocurrencies altogether.
Kazakhstan isn’t the only CIS country seeking to be at the forefront of the cryptocurrency revolution. As reported by Sputnik.by, Belarus is seeking to launch a similar cryptocurrency regulation association.
What is Kazakhstan’s Blockchain and Cryptocurrency Association?
Kazakhstan’s new Blockchain and Cryptocurrency Association applied for official national registration as a legal entity in mid-November. If successful, that legal registration would allow the association to promote cryptocurrency ideas and legislation across the country.
The association was founded by six organizations, and 15 additional organizations have already applied for membership.
“Our main goal is to prescribe the rules of the game in the blockchain market and cryptocurrency in Kazakhstan together with the regulator,” explained the organization’s co-founder and council chairperson Yessett Butin. That regulator, by the way, would be the National Bank of Kazakhstan.
“There are no companies operating in the blockchain market in Kazakhstan, but there are more companies that see the promise of technology for themselves.”
Butin cited Belarus as one country that has benefited from the work and research of a cryptocurrency association.
The National Bank of Kazakhstan May Release a CryptoTenge
At this point, the CryptoTenge has not yet been confirmed. However, Butin and his Blockchain and Cryptocurrency Association will advise the National Bank on the benefits of creating a digital representation of the country’s fiat currency.
That currency, if launched, would be called the CryptoTenge. It would follow the same features and functions as similar national currency projects worldwide. It would be a digital representation of the country’s existing Kazakhstani Tenge currency, exchangeable at par with the fiat version.
One of the most obvious advantages of the CryptoTenge would be its ability to be converted into other world cryptocurrencies in a faster, easier way.
Kazakhstan provides unique benefits for cryptocurrency users. The yields on deposits on Tenge accounts have been decreasing, and some Kazakh banks have become unreliable.
“People are looking for an alternative and find it in the form of cryptocurrency,” explained Butin.
It remains to be seen whether the National Bank of Kazakhstan will release its own CryptoTenge. However, the growing Blockchain and Cryptocurrency Association seems dedicated to making cryptocurrency work in the large central Asian country.
Source: The Astana Times