Kazakhstan has become the latest country to announce plans to create its own digital currency, signaling an intention to follow in some respects the path taken by Russia.
Kazakhstan aims to capitalize on an underdeveloped regional market
The Astana International Finance Centre (AIFC), a government-backed Kazakh institution, has signed a cooperation agreement with Malta-based Exante, which describes itself as “a next-generation investment company.” Exante said it will work with the AIFC to develop the still largely untapped cryptocurrency market across the former Soviet region. “Blockchain technology and cryptocurrencies are entering the mainstream of today’s economic reality,” said Kairat Kelimbetov, Governor of the AIFC. “Financial regulators in Astana have begun laying the foundations for a fintech-friendly environment in Kazakhstan. We believe the AIFC can become an international hub for blockchain operations. Furthermore, developing the digital asset market is a priority for us in the near future,” he added.
Kazakhstan is part of a broader global trend
Debate continues over how best to govern and regulate decentralized digital currencies, ranging from the Swiss preference for a permissive regulatory framework to China’s strict prohibition. A more recent trend, however, is emerging in which states consider launching their own initial coin offerings (ICOs) or issuing government-backed digital currencies. In August, Estonia proposed a digital asset called “Estcoin” and discussed the possibility of introducing it via an ICO. Last month, Japan announced plans to explore a potential digital currency referred to as J-Coin. Russia’s intention to introduce a “CryptoRuble” remains one of the most notable national cryptocurrency initiatives and has drawn widespread attention.