Kazakhstan Launches Stablecoin to Cement Digital Finance Leadership

Kazakhstan has launched its first national stablecoin, Evo (KZTE), pegged 1:1 to the tenge, marking a pivotal step in the country’s digital financial transformation. The initiative, unveiled by the National Bank of Kazakhstan, operates within a regulatory sandbox framework to test innovations while maintaining oversight. Evo is designed to bridge traditional finance and cryptocurrencies, enabling seamless crypto-fiat transactions, cryptocurrency exchanges, and payments via crypto-linked cards. The stablecoin, built on the Solana blockchain, is a collaborative effort involving Intebix, Eurasian Bank, and global partners like Mastercard, which aims to integrate KZTE into international payment networks.

The project underscores Kazakhstan’s ambition to lead in regulated crypto integration. National Bank Governor Timur Suleimenov emphasized that blockchain technologies could enhance financial inclusion, streamline payment systems, and drive economic growth. Unlike private-sector-led stablecoin projects in other nations, Kazakhstan’s central bank has taken a proactive role, establishing the legal and operational framework for the token’s development. This approach, according to Intebix founder Talgat Dossanov, strengthens regulatory stability while fostering innovation.

Evo’s immediate applications focus on expanding the crypto-to-fiat channel and facilitating everyday transactions. While it cannot yet be used directly for purchasing goods and services, Kazakhstani citizens can issue and store funds in the stablecoin. Mastercard’s involvement is critical, as it plans to connect KZTE to global stablecoin networks, enhancing cross-border usability. This aligns with Kazakhstan’s broader strategy to position itself as a global hub for digital finance, leveraging its existing strengths in Bitcoin mining—accounting for 13% of global mining power.

The stablecoin launch complements Kazakhstan’s existing digital initiatives. In 2023, the country introduced a central bank digital currency (CBDC) for the tenge, streamlining processes like VAT reimbursements. Earlier this year, the government also approved the use of USD-pegged stablecoins, such as Tether (USDT), for regulatory fee payments. These steps reflect a phased approach to digitizing the financial system, with Evo serving as a cornerstone for future expansion.

Looking ahead, the National Bank has announced plans to establish a state digital asset fund under its Investment Corporation. This fund will strategically hold stable and widely used cryptocurrencies, aiming to bolster financial resilience and innovation. President Kassym-Jomart Tokayev’s directive to create such a reserve signals a long-term commitment to integrating digital assets into the national economy. With Mastercard’s support and Solana’s scalable infrastructure, Evo could catalyze Kazakhstan’s emergence as a leader in regulated blockchain-based finance.