BAKU, Azerbaijan, September 6. Binance Kazakhstan, the National Bank of Kazakhstan, and the National Payment Corporation of Kazakhstan are in the process of testing the project of issuance of digital tenge-backed stablecoin focused on a model that significantly reduces risks for users of digital tenge, the head of Binance for Central and Eastern Europe (CEE) and Central Asia Kyrylo Khomiakov said, Trend reports.
“In the process of testing, the project participants focused on the stablecoin model, which significantly reduces risks for users of digital tenge and provides transparency due to the technology of “proof of security” in real-time,” he said.
According to him, this technology was made possible due to the programmability of the digital tenge.
“The ‘proof of collateral’ technology will allow users to independently verify that the value of the issued stablecoin stored in the generated wallet corresponds to the value of the test digital tenge. This scenario will help identify the key risks associated with the issuance of digital tenge-backed stablecoins and define the roles and responsibilities of all participants in the process.
Furthermore, it is planned that based on the data obtained, the National Bank of Kazakhstan will develop scenarios for further testing the compatibility of various platforms and create a regulatory framework for the use of Kazakhstani stablecoin," he said.
Meanwhile, earlier, Binance Kazakhstan, the National Bank of Kazakhstan, and the National Payment Corporation of Kazakhstan announced the issuance of a test stablecoin backed by digital tenge. The issue was carried out in the test network BNB Smart Chain (BSC) in the framework of testing the blockchain's interoperability on which Kazakhstan's digital national currency will operate.
Stablecoins are cryptocurrency tokens whose rate is linked to some asset, such as a dollar, euro, or an ounce of gold. Their reserves are backed by real assets - fiat currencies, securities, precious metals, etc.