The National Bank of Kazakhstan has unveiled a pilot project for a stablecoin, pegged to the national currency, the tenge. The initiative is being developed in partnership with Solana and Mastercard and has been named Evo (KZTE). The issuance of this digital asset will be overseen by participants within a regulatory sandbox, including the crypto exchange Intebix and Eurasian Bank.
Dubbed a “national stable coin,” Evo’s primary intention is to bridge the gap between blockchain innovations and traditional financial systems. The token, which maintains its value relative to the tenge, is set to enhance the crypto-fiat gateway, facilitate the exchange of digital assets, and enable transactions through cryptocurrency cards.
Importantly, the National Bank is not directly issuing this stablecoin. Rather, it is establishing a legal framework to support its issuance and testing as part of a broader strategy to develop the virtual currency landscape within the country. Timur Suleimenov, head of the National Bank, emphasized the significant role that digital assets and blockchain technology will play in generating new services and improving financial accessibility for citizens.
However, not everyone supports the initiative. Libertarian economist Yevgeny Romanenko criticized the creation of a national stablecoin, suggesting that it reflects a mere mimicry of blockchain principles. According to Romanenko, the state’s move to launch a stablecoin is an attempt to maintain control over the monetary system in response to the increasing popularity of cryptocurrencies. He highlighted a global trend where authorities are attempting to co-opt digital assets to align with the demands of the crypto community for greater adoption.
While he recognizes the technical benefits of blockchain transactions over traditional banking systems, Romanenko asserts that the authorities’ primary motive is to streamline the creation of money from scratch. He views national stablecoins as an ongoing effort of government intervention in economic activities and control over financial transactions. The emergence of Bitcoin has challenged this state monopoly, leading authorities to adapt to the changing financial landscape, Romanenko contends.
“This is mimicry, nothing more,” he stated, adding a warning for those who might be swayed by the perceived security of such initiatives: “A wolf does not cease to be a predator by donning a sheep’s skin. As for the sheep who wish to remain so, they are advised to stay vigilant.”
In a related development, President Kassym-Jomart Tokayev recently announced the establishment of a state digital asset fund designed to help accumulate a strategic reserve of cryptocurrencies for the nation.
