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Kazakhstan is on the verge of a financial transformation, with the National Bank exploring the integration of digital financial assets (DFAs) into the mainstream economy. This move could pave the way for a new financial sector and allow citizens to use cryptocurrencies for everyday purchases.

A New Era for Financial Markets

Timur Suleimenov, the head of Kazakhstan's National Bank, announced that the regulation of DFAs could lead to the emergence of a completely new branch within the financial market. He highlighted that while traditional finance revolves around banks, insurance, loans, and bonds, technological advancements are introducing new possibilities like tokenized assets, digital bonds, and crypto-fiat payment channels.

Democratizing Access to Finance

One of the key advantages of DFAs, according to Suleimenov, is the democratization of access to financing. For instance, real estate developers could tokenize properties, such as residential complexes or individual apartments, and offer them for sale to investors through digital tokens. This innovation could introduce new competition for traditional banking institutions.

Legalizing Cryptocurrency Circulation

A significant aspect of the proposed regulations involves the legalization and oversight of cryptocurrency circulation. While cryptocurrencies like Bitcoin are already actively used in Kazakhstan, they largely operate outside the legal framework. Suleimenov suggested that instead of outright bans, the focus should be on licensing crypto exchanges. These licensed entities would be required to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as well as adhere to banking, payment, and tax laws.

Introducing Crypto-Fiat Cards

The initiative is already seeing practical applications. Two banks have begun issuing crypto-fiat cards that allow payments from accounts holding stablecoins. During a transaction, the funds are automatically converted into the national currency, the Tenge. Suleimenov also mentioned that two more banks are preparing to launch similar products.

The National Bank anticipates that the development of the digital financial asset market will provide a significant boost to the fintech sector and the overall economy of Kazakhstan, making these innovations visible to consumers in their daily lives.