The global exchange Binance is consolidating its activities in Kazakhstan. A few days ago, the platform obtained a license to operate services related to digital assets. Binance now plans to partner with the country’s central bank to support the development of a Central Bank Digital Currency (CBDC). The fact that a major crypto operator is investing in the development of a CBDC does not please everyone…
A Kazakhstani CBDC integrated into the BNB Chain
The Binance exchange goes to conquer Kazakhstan! CZ, the CEO of Binance has indeed made known that the CBDC developed by the country could be integrated into the BNB Chain.
Our team met with the First Deputy Governor of the National Bank of Kazakhstan (NKB), Berik Sholpankulov and Binur Zhalenov the head of the NKB payment center. We introduced them to the NBB Chain community to discuss the tests integrating their CBDC (Digital Tenge) with the BNB Chain.CZ, CEO of Binance
The announcement of the possible integration of Kazakhstani CBDC into the BNB Chain comes a few days after Binance was granted permission to operate in Kazakhstan as an operator of digital asset services.
“We welcome Kazakhstan’s willingness to become a leading player in the field of new digital technologies and cryptocurrency ecosystem” had reacted Gleb Kostarev, the regional head of Asia for Binance.
Kazakshtan is one of the crypto-friendly states. In particular, the country is known as a suitable land for cryptocurrency mining. After China banned mining, the country has been a haven for miners.
Up to 18% of the Bitcoin hashrate is provided by miners in Kazakhstan, second only to the United States.
Recently, the country conducted its first successful trial of converting the national currency into crypto. Based on this success, Kazakhstan authorities are now considering granting full legal recognition to crypto.
Is Binance doing the crypto community a favor?
Binance‘s CEO believes that CBDC’s integration with NBB Chain is further evidence that his company is relentlessly pushing for global crypto adoption. For him, this integration will bridge the gap between traditional banking and the crypto ecosystem.
I’m looking forward to NBK preparing use cases for their CBDC, to see how to integrate it with the BNB Chain and finally bridge the gap between traditional banking and the crypto ecosystem.CZ, CEO of Binance
Some people encourage Binance to support a CBDC in Kazakhstan. This is notably the case of this Internet user for whom Binance contributes to “build bridges between the real and virtual world on a national scale for the country”.
But, this optimism is not shared by all…
For Alex Gladstein, Director of Strategy at the Human Rights Foundation, the Kazakh authorities are not developing CBDC for the benefit of their citizens.
The repressive regime of Kazakstan just wants to strengthen control and surveillance, says the man who coordinates a project to develop Bitcoin around the world.
Alex Gladstein‘s concerns should be taken seriously. A few days ago, a senior official of the International Monetary Fund (IMF) suggested that CBDC could help control citizens. In our view, CBDC is a danger to the finances and freedoms of citizens, and Edward Snowden will not say otherwise.
Binance should know: all governments in the world are looking to better control and monitor their citizens. The CBDC is an important tool at their disposal to achieve this goal. Rather than supporting the development of a central bank digital currency, Binance should continue its efforts to boost the adoption of decentralized cryptocurrencies like Bitcoin to stay in the heart of the community.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.