Financial regulators in Kazakhstan and China have reached an agreement to launch a pilot project on settlements in the digital tenge and digital yuan, the press service of the National Bank of Kazakhstan reported following a visit by its delegation to China.
“An important step was the agreement reached between the National Bank and the People’s Bank of China to launch a pilot project for settlements in digital tenge and digital yuan,” the statement said.
“We have agreed to integrate the digital tenge and the digital yuan in two complementary ways: through the mBridge multilateral platform (an international multi-currency platform for real-time cross-border payments and transfers using blockchain technology) and through direct bilateral integration via CBETS (Cross-Border e-CNY Transfer Services, the digital yuan platform for cross-border settlements),” explained Binur Zhalenov, Deputy Chairman of the National Bank of Kazakhstan, who participated in the negotiations, on his social media page.
During negotiations with Cross-Border Interbank Payment System (CIPS), the parties discussed further practical steps to implement the memorandum of understanding between the National Bank, the National Payment Corporation, and CIPS, as well as prospects for expanding the use of cross-border payment infrastructure, developing settlements in national currencies, and strengthening cooperation in the field of international payments.
As part of the implementation of the memorandum between the National Payment Corporation of Kazakhstan and UnionPay International (UPI)—the global division of China UnionPay responsible for the international development of UnionPay products and services—the integration of QR payments between the two countries will be completed by the end of the year, according to the National Bank of Kazakhstan.
The central banks also signed a new three-year currency swap agreement, with the option to extend it by mutual agreement of the parties.
During meetings with the China Banking Association and the leadership of China’s largest commercial banks, discussions focused on their participation in financing investment projects in Kazakhstan and issuing debt instruments.
CHINA, KAZAKHSTAN, PAYMENT, тенге, Юань
