China and Kazakhstan have signed a collaboration agreement to advance research and development of central bank digital currencies （CBDCs）. This partnership aims to enhance cross-border transactions and economic integration through shared expertise and joint research projects.
Points
- China and Kazakhstan signed an agreement to collaborate on CBDC development.
- The partnership includes sharing information, conducting joint research, and improving staff competencies.
- The collaboration aims to enhance cross-border transactions and economic integration.
- The memorandum establishes a framework for ongoing cooperation and knowledge sharing.
- The agreement underscores the global race for CBDC adoption.
The People’s Bank of China （PBoC） and the National Bank of Kazakhstan （NBK） have entered into a partnership to collaborate on the research and development of central bank digital currencies （CBDCs）. This collaboration is part of a broader effort to enhance financial inclusion, improve payment efficiency, and reduce transaction costs for international trade and economic integration.
Details of the Collaboration
Under the agreement, the two central banks will share their expertise and knowledge in CBDC development and implementation, conduct joint research projects, and enhance the skills and competencies of their employees involved in CBDC research and development. The cooperation began during the state visit of Chinese President Xi Jinping to Kazakhstan and the signing of the Memorandum of Understanding.
Enhancing Economic Efficiency
The development of CBDCs is expected to facilitate faster, more secure, and cost-effective cross-border transactions. Observers note that the collaboration between China and Kazakhstan could lead to increased economic efficiency, reduced transaction costs, and improved financial inclusion. The project will be supported by the PBoC’s Digital Currency Institute and the Kazakhstan National Payment Corporation.
Global Race for CBDCs
Countries worldwide are accelerating their efforts to adopt CBDCs to enhance financial inclusion, improve payment efficiency, and reduce reliance on the U.S. dollar. For instance, Indonesia’s central bank launched Project Garuda in 2022 to introduce a digital e-rupiah, while Sweden’s Riksbank has been running a pilot for its e-krona CBDC since 2020. The U.K. is also exploring the potential launch of a CBDC, focusing on complementing cash and bank deposits.
解説
- The collaboration between China and Kazakhstan marks a significant step towards enhancing digital currency research and innovation.
- Joint research projects and knowledge sharing aim to improve the development and implementation of CBDCs.
- The partnership underscores the importance of international cooperation in the financial sector.
- The global race for CBDC adoption highlights the need for innovative solutions to enhance financial inclusion and payment efficiency.
- The collaboration between China and Kazakhstan reflects a mutual commitment to advancing digital solutions and embracing innovation in the financial sector.