Kazakhstan announces world’s first cryptocurrency backed by fiat

The AIFC have announced a partnership which is developing a national cryptocurrency backed by fiat currency.
Kazakhstan’s Astana International Financial Centre (AIFC) has announced their collaboration with Exante, which will start developing a national cryptocurrency for Kazakhstan. Exante’s “Stasis” platform will be utilized as the foundation for the national cryptocurrency. Malta-based Exante is an investment company that was founded in 2011.

According to the governor of the AIFC, Kairat Kelimbetov, blockchain and cryptocurrencies are readily entering into the mainstream of economic activity. Kelimbetov stated that the AIFC hopes to become an international leader in the area of developing and implementing distributed ledger technology.

Kelimbetov confirmed that Astana’s leading financial regulators have already started their work and are currently laying down the foundation for Kazakhstan’s future fintech environment. The AIFC has expressed their belief that this collaboration will cement the AIFC as an international hub for all blockchain operations and transactions. The firm also confirmed that they will prioritize the development of other digital assets in the market.

Kelimbetov also specifically mentioned an upcoming expo that the AIFC hopes will help to positively influence the international perception on the fintech and distributed ledger technology in Kazakhstan. Several media reports stated that Kelimbetov stated that the AIFC assumes that the upcoming expo will prove to be entirely dedicated to the future of fintech and cryptocurrencies. According to Kelimbetov, the international community is becoming increasingly interested in blockchain technology, not only in terms of the actual technology involved, but also in terms of regulation as well as the impact of the technology.

Kelimbetov expressed the AIFC’s hope of balancing an environment that both encourages innovation, but also ensures financial stability. According to Kelimbetov stated that both the US and Singapore simply want to apply existing financial models to the world of cryptocurrencies and implement existing cryptocurrencies into the economic realm. The direction is also strongly supported by Switzerland and Japan. Japan has been a pioneer in accepting cryptocurrencies as a means of payment. Kazakhstan intends to implement a more balanced view, which would encourage more innovation in the industry.

Kelimbetov confirmed that the AIFC has received instruction from the head of state to make Kazakhstan a leading expert in fintech innovation. To achieve this ambitious goal, the AIFC intends to join different international hubs which focus on technology. These hubs include global banks who are also currently engaged in finding appropriate solutions for the many problems presented by cryptocurrencies.

In early October, the AIFC signed a memorandum of cooperation with Microsoft in order to establish the country's Blockchain Innovation Centre. This center was created with the intention to encourage innovation within the ecosystem of distributed ledger technology. Earlier this year, the AIFC also announced their partnership with Deloitte and Waves, which would develop a regulatory framework for cryptocurrency, blockchain, and fintech companies.