China and Kazakhstan cooperate to promote CBDC development

Recently，The National Bank of Kazakhstan and the People’s Bank of China (PBoC) have signed a MoU to enhance research and training on central bank digital currencies (CBDCs).

This agreement establishes a framework for sharing information, practices, and research results related to CBDCs between the two institutions.

Objectives of the Collaboration

Information Sharing and Research:

The two central banks will share data, conduct joint studies on CBDCs, and improve staff knowledge through training and exchange programs.

Institutional Cooperation:

The project will involve the PBoC’s Digital Currency Institute and the Kazakhstan National Payment Corporation to ensure effective implementation of the agreed objectives.

Enhanced Research and Development:

The collaboration is expected to lead to significant advancements in the development and implementation of CBDCs.

Strategic Shift: Both nations demonstrate a commitment to embracing digital financial innovations, positioning themselves as leaders in the cryptocurrency and digital currency sectors.

Institutional Roles:

The National Payment Corporation of Kazakhstan’s National Bank and the PBoC’s Digital Currency Institute will be the key entities executing the goals outlined in the MoU.

Their involvement ensures that the research and development activities are aligned with the strategic objectives of both central banks.

Time backgroud

The cooperation began during a state visit by Chinese President Xi Jinping to Kazakhstan, highlighting the significance of the partnership at a diplomatic level.

This agreement is seen as a strategic move to foster innovation and the adoption of digital currencies in both countries.

CBDC Developments in China

China started testing its CBDC, the e-CNY, in 2019 and has since expanded the pilot to 26 cities, with over 6 million merchants participating by 2022.

The e-CNY aims to enhance the digital payment ecosystem, complementing existing mobile payment systems like AliPay and WeChat Pay.

Conclusion

The collaboration between China and Kazakhstan on CBDC development signifies a crucial step towards advancing digital currency research and innovation.

The Memorandum of Understanding aims to foster knowledge sharing, joint research, and enhanced competencies among staff.

This partnership not only underscores the importance of international cooperation in the financial sector but also reflects a mutual commitment to adopting innovative digital solutions and driving forward the strategic shift towards the cryptocurrency market.