Kazakhstan Is About to See Its First Cryptocurrency Backed by Fiat Money
Cryptocurrency is coming to the Republic of Kazakhstan, according to a recent press release from the Astana International Financial Centre (AIFC), a developmental body established by President Nursultan Nazarbayev.
Kazakhstan Gets Its First Cryptocurrency
Astana is teaming up with Exante Investment Company to develop the Eurasian country’s cryptocurrency market. The announcement came by way of memorandum, where Exante agreed to cooperate in spearheading AIFC regulation pertaining to digital assets.
Exante is an investment services company specializing in Direct Market Access (DMA), an electronic trading facility that gives investors entry into order books. The company has offices in at least seven jurisdictions, including Moscow, Dubai, Riga and Cyprus. Exante has several blockchain projects under its portfolio.
A public-private partnership to streamline cryptocurrency regulation is certainly a unique proposal. Governments around the world have taken a more adversarial approach to digital assets, with some issuing outright bans and others seeking to limit the spread of blockchain-powered currency.
According to the AIFC press release, “leading financial regulators are actively working to create favourable conditions for the development of financial companies” in hopes of transforming Astana into a global fin-tech hub.
Kazakhstan isn’t the first country to express interest in launching its own digital currency. This past summer, Estonia proposed its own state-backed cryptocurrency. Japan has also signaled interest in launching its government-backed digital asset, called J-Coin. It also appears that Russia is set to move forward with the CryptoRuble, according to the TASS news agency.
Kazakhstan’s entry into the cryptocurrency market will be backed by Stasis, Exante’s new blockchain platform. Unlike other digital ledger projects, Stasis is backed by fiat money. This setup is intended to facilitate transactions between cryptocurrency and traditional finance.
Antoly Knyazev, co-founder of Exante, has joined several working groups on cryptocurrencies, having held meetings with the governments of Malta, Cyprus and Kazakhstan. This suggests that the Stasis project, or others like it, could become more common in the future.
Stasis has been described as a transparent cryptocurrency because it is tied to physical assets and backed by fiat money and bonds. The cryptocurrency enables instant payments at lower fees and increased transaction speed. The platform has also been audited by the government of Kazakhstan.
Knyazev expects the market cap for Stasis to reach 2-3 billion euros or their equivalent.
With assistance from Anastasiya Ernays.
Featured image courtesy of Shutterstock.