Kazakhstan Set to Launch Its Own Fiat-Backed Cryptocurrency

Kazakhstan’s government-supported Astana International Finance Center (AIFC) and Exante recently announced a partnership that’s set to develop a national Fiat-Backed cryptocurrency, so that the country’s government can launch a cryptocurrency backed by its fiat currency.

According to a press release published by Exante, a Malta-based investment company founded in 2011 that calls itself the “next generation investment company”, its Stasis platform will be used as the foundation for Kazakhstan’s cryptocurrency.

AIFC’s governor, Kairat Kelimbetov, stated that cryptocurrencies and blockchain technology are now “entering the mainstream of today’s economic reality,” and emphasized that the AIFC wants to become an international hub for blockchain operations, adding that the “development of the digital assets market is our key priority in the near future.”

According to local publication The Astana Times, the AIFC is also hosting an expo on blockchain and cryptocurrency technologies, further showing its commitment to Fintech. To Kelimbetov, the expo will improve international perceptions and will “become a kind of crypto valley or crypto harbor” as the whole world, per his own words, is very interested in this type of technology, with some central banks supporting it, and others closely following it.

The AIFC’s governor also pointed out, using examples from all over the world, that although the organization wants to foster innovation and adopt cryptocurrencies, it also wants to ensure financial stability. He stated:

“The United States and Singapore want to equate the activities of crypto-economic with ordinary activities in the financial sphere. In Switzerland, this direction is strongly encouraged and Japan supports some cryptocurrencies as a means of payment. We want to say that in this direction AIFC will be on the ‘edge’ concerning understanding the processes that are taking place. But on the other hand, we are responsible for issues of financial stability and regulation of certain financial institutions.”

The Astana Times added that this month the AFC has signed a memorandum of cooperation with Microsoft, to create a Blockchain Innovation Center, which will help create and develop start-up projects based on the technology.

If Kazakhstan does launch its own fiat-backed cryptocurrency, the country will be joining numerous other countries and regulators with an interest in a national cryptocurrency. Last month, for example, Japanese banks signaled the potential launch of their own cryptocurrency, the J-Coin.

Russia, according to reports, is also going to launch its own national cryptocurrency, the CryptoRuble.